Intel gets the Halloween chills from the crunch monster

INTEL HAS ADMITTED IT fears the credit crisis bogey man which lurks under its bed, trembling that the beast could suck up all the demand for chips and leave its key suppliers bankrupt, resulting in scarily serious product delays.

In its latest 10-Q filing, Chipzilla made no effort to disguise its fears and worst nightmares that the “current uncertainty in global economic conditions poses a risk to the overall economy as consumers and businesses may defer purchases in response to tighter credit and negative financial news, which could negatively affect product demand and other related matters”. Chilling stuff.

Intel, which makes 80 per cent of all the microprocessors for computers, described the potential horror ahead. “There could be a number of follow-on effects from the credit crisis on Intel’s business” the filing noted, adding that “inability of customers to obtain credit to finance purchases of our products and/or customer insolvencies; counter-party failures negatively impacting our treasury operations; increased expense or inability to obtain short-term financing of Intel’s operations from the issuance of commercial paper” was also problematic.” Aaaaaaaarrrrrrrrrrrrrgggggg!

In another gruesome development, Intel shares dropped 32 cents this morning, or 2 per cent, to $15.85.

They must be spooked. µ

L'Inq
10-Q filing