Intel raised its revenue outlook for the fourth quarter but also announced that it expects to take a $600 million charge against the quarter's earnings.

The company said revenue will come in between $8.5 billion and $8.7 billion for the quarter, narrowing down its previous forecast of between $8.1 billion and $8.7 billion set in October.

The increase in revenue comes from microprocessors. Intel's communications product line, however, remains to be weak. The company expects to take a goodwill impairment charge related to its Wireless Communications and Computing Group, the company said.

Intel indicated that its communications products groups are performing as expected. However a delay in introducing some cellular phone chips, coupled with a later-than-expected transition to the next generation of cellular phones, contributed to the target miss, the company said.

The resulting goodwill impairment charge could be as high as $611 million and would reduce Intel's fourth-quarter earnings by a few cents per share, an analyst said.

By: DocMemory
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