Intel has revealed it expects profits to fall by 23 percent in the last quarter of its 2008 financial year due to falling demand for computer processors.
The chip maker expects a fourth-quarter revenue of $8.2bn (£5.4bn), down 20 percent compared to the previous quarter. Intel revised its fourth-quarter expectations ahead of its scheduled earnings announcement on January 15.
Intel's grim news comes as technology companies are feeling the full brunt of the global economic crisis, as demand for software and hardware slows.
Intel also said it will take a much higher loss on other equity investments than it expected. The company will note a non-cash charge in the fourth quarter of $950m (£631m) related to its investment in Clearwire, which has a WiMax mobile broadband network.
Clearwire's share prices have steadily fallen since February 2008. It traded Wednesday around $5.09 (£3.30) a share.
Overall, Intel expects to lose between $1.1 and $1.2bn (£730,000m and £798,000m) on equity investments rather than the $50m (£33m) it previously expected to lose.
Intel said it expects to have spent about $2.6bn (£1.73bn) on research and development rather than $2.8bn (£1.86bn). Restructuring and asset impairment charges will be around $250m (£166m), the same as the company's previous guidance.