Intel takes $600 million hit on Wireless Group

By Steve Malone

Posted on 5 Dec 2003 at 10:02

Chip giant is to write down $600 million from its Wireless Communications and Computing Group from its fourth quarter results. The 'goodwill impairment charge', as it is called, is because the company estimates that long term growth is not expected to be as bullish as previously estimated.

The write down is despite the fact that Intel has put a huge amount of marketing effort into boosting WiFi this year following the launch of the Centrino technologies in March. However, despite the huge amount of hype and product announcements, the WiFi revolution hasn't happened this year.

Elsewhere the picture is looking rosier for Intel. The company is expected to deliver revenues at the top end of its previous $8.1-$8.7 billion forecasts as the Intel architecture business benefits from a surge in seasonal growth. R&D spending is forecast to be a tad more than expected at $4.4 billion for the year, compared to the previous estimate of $4.3 billion.