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Technology is far from a recovery if you trust what the companies are telling you at face value.  Just look at Intel Corporation (NASDAQ: INTC) and you will see why.  The processor and chip beast just issued more downward numbers this morning and shares are paying the price.

It now projected that its Q4 revenue was roughly $8.2 billion, down 20%from last quarter and down 23% from last year’s Q4.  Thomson Reuters (First Call) estimates were an already-poor $8.74 billion.  The bad news just keeps coming.  You can guess why:"as a result of further weakness in end demand and inventory reductionsby its customers in the global PC supply chain."   The giant also noted that its gross margin is at the bottom of theprevious expectation of 55%, plus or minus a couple of points.

The company is also taking other "mark to market adjustments" as well.Based upon Clearwire Corporation (NASDAQ: CLWR) stock prices, Intelwill impair the value of its investment with a non-cash charge tofourth-quarter earnings of approximately $950 million. The company nowexpects the loss from equity to be  between $1.1 billion and $1.2 billion versus aprevious expectation of a loss of approximately $50 million.  Thathurts on the GAAP numbers, but not on the non-GAAP numbers.

Based upon this, the company is lowering its R&D (plus MG&A)projections to approximately $2.6 billion rather than its prior $2.8billion target.

Shares of Intel are down more than 4% pre-market at $14.74 on more than1.3 million shares.  This is just further evidence of a cold day onChristmas despite your local weather.

Intel’s 52-week range is $12.06 to $25.29.  The pain continues.

Jon C. Ogg
January 7, 2009