Intel Misses Wall Street Expectations

The Santa Clara, Calif.-based company turned in sales of $6.5 billion for the third quarter, which was on target with expectations.

On the plus side, Intel reported a profit of $686 million for the third quarter, compared with $106 million for the same quarter a year ago.

In a statement, the company said fourth-quarter sales were expected to come in between $6.5 billion and $6.9 billion, which would be at or below current expectations. Intel said sales would be lower than expected for the second half of the year and it would see "higher-than-expected excess capacity charges."

Among other things, Intel said its average selling prices during the third quarter were lower than the previous quarter, but that microprocessor unit shipments were higher, as were chipset, flash memory and Ethernet connectivity products.