Makes wide forecast despite growing profits

Intel warns of ?soft market?

Intel has reported a strong revenue growth of 12 per cent for the third quarter but has warned that continued global financial problems could have a negative effect on its business in the coming months.

Sales of Atom notebook processors continue to be a major driver for sales, with the Atom line generating $200 million for the company, while mobile hardware sales accounted for 45 per cent of total revenue.

However, Intel CEO Paul Otellini said in a conference call that the financial crisis “may impact our business but the extent of that is difficult to quantify,” and noted that sales of corporate hardware had been weaker than expected.

“We saw some softness in September in the corporate segment while consumer was more seasonal,” said Otellini. “As we head into Q4, we see some mixed signs. We expect the corporate segment to continue to show some softness as IT spending gets rationalized in this macro environment.”

As a result of these doubts, Intel has widened its predictions for the fourth quarter, promising a mid-quarter update on December 4th.

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