Intel expects no revenue growth in 2014January 17, 2014 - 11:01 AMT PanARMENIAN.Net - The world's biggest computer chip maker, Intel, has said it expects no revenue growth in 2014, sending its shares down 5% in after hours-trading, BBC News reports. The weak forecast comes as chip makers continue to be hurt by a drop in sales of personal computers (PCs). Revenues at Intel's division which makes chips for desktop computers fell 4% in 2013, from a year ago. However, the company said there had been signs in the past few months that the PC sector was "stabilizing". According to its latest earnings, the PC chip division generated revenues of $8.6bn in the October-to-December quarter of 2013, compared with $8.5bn a year ago. "We had a solid fourth quarter with signs of stabilization in the PC segment and financial growth from a year ago," said Intel chief executive Brian Krzanich, according to the BBC. For the full year 2013, the firm reported a net profit of $9.6bn, down 13% from a year ago. Sales of PCs have fallen for six quarters in a row, hurt by the growing popularity of tablets and smartphones. As a result, computer chip makers have been looking to boost growth in other divisions and areas to try and sustain their growth. In case of Intel, analysts have been focusing on the performance of its data centre business. Intel said the division's revenues rose 8% in the last quarter of 2013, from a year earlier. However, the rise was less than what some analysts had expected. "The incremental nugget we got from fourth quarter earnings was that data centre group disappointed again," said Patrick Wang an analyst with advisory firm Evercore. He said investors were anticipating a healthy performance from the division. Intel's chief financial officer, Stacy Smith, said the division's revenues in 2014 would probably come in toward the bottom of the previous estimate of 10% to 15% growth. Intel has also taken other steps to create new growth areas and offset the impact of slowing PC sales on its business. At the recently held Consumer Electronics Show (CES), in Las Vegas, the firm showcased various new technologies. That included a 3D-camera technology, where one of its depth sensors could be used to interpret gesture controls and to separate foreground objects from the background. It said laptops featuring the technology would go on sale this year. The company also unveiled a series of new concept wearable technologies - seen by many as a key growth area in the coming years. Related links: Top stories Yerevan will host the 2024 edition of the World Congress On Information Technology (WCIT). Rustam Badasyan said due to the lack of such regulation, the state budget is deprived of VAT revenues. Krisp’s smart noise suppression tech silences ambient sounds and isolates your voice for calls. Gurgen Khachatryan claimed that the "illegalities have been taking place in 2020." Partner news Most popular in the section | The Power of One Dram to benefit Road of Life charity The companies inform that the May beneficiary of The Power of One Dram is the “Road of Life” charitable organization. Kazakhstan welcomes Yerevan, Baku’s agreement to meet in Almaty Kassym-Jomart Tokayev has welcomed the agreement of Baku and Yerevan to hold negotiations in Almaty. Armenia offers to temporarily host, preserve Gaza manuscripts The Armenian Foreign Minister has said Yerevan is ready to help preserve manuscripts from the conflict zone in Gaza. Aliyev says no need for mediators in Armenia-Azerbaijan process Azerbaijani President Ilham Aliyev believes that Baku and Yerevan do not mediators in the process of normalizing relations. |