Intel warns again on Q4

By Ritsuko Ando

NEW YORK (Reuters) - Microchip maker Intel (INTC.O) issued its second revenue warning on the fourth quarter since November, as demand for personal computers weakens worldwide, and its shares fell 3.25 percent.

The world's biggest maker of the central processing units (CPUs) at the heart of every PC dropped its fourth-quarter revenue forecast to $8.2 billion (5.4 billion pounds), down from $9 billion in November. In October, the company had expected a range of $10.1 billion to $10.9 billion.

"Clearly we are going to be in an ugly period for corporate earnings," said Tim Ghriskey, an analyst with Solaris Asset Management. "Intel being a bellwether for the industry it will take the industry down as well."

The November warning reverberated throughout the markets for days. After Intel's warning on Wednesday the index of chipmakers, .SOXX, was down 3 percent to 227.61.

Intel, which reports earnings on January 15, expects its gross margin to be at the bottom of its previous expectation of 55 percent, plus or minus a couple of percentage points.

Intel also took a hit from its equity investments, including a low year-end share price in Clearwire Corp (CLWR.O), which delivers Internet access using Intel's WiMAX wireless technology.

It predicted a net loss from equity investments and interest of between $1.1 billion and $1.2 billion, far greater than its previous expectation of about $50 million.

Intel shares fell 64 cents, or 3 percent, to $14.73 in Nasdaq trading, and together with a weaker-than-expected jobs report, weighed down the overall market.