Intel profit plunges 90 percent

The Santa Clara, California-based company said net profit in the last three months of the year plunged to $234 million, down 90 percent from a year ago, on revenue of $8.2 billion. Intel reported a profit of $2 billion in the third-quarter of 2008, on $10.2 billion of revenue. Intel also reported Thursday that net profit for the year declined 24 percent to $5.3 billion on revenues of $37.6 billion, 2 percent lower than a year ago.

Intel lowered its fourth-quarter projections twice in the past few months and the results did not surprise analysts. Earnings of 92 cents per share for the year were in line with expectations.

Intel has also warned that it expects even worse results this quarter than the previous three months, with expected revenues of $7 billion. "The economy and the industry are in the process of resetting to a new baseline from which growth will resume," Intel president and chief executive Paul Otellini said in a statement. "While the environment is uncertain, our fundamental business strategies are more focused than ever," he said. "Intel has weathered difficult times in the past, and we know what needs to be done to drive our success moving forward."