Intel results, = outlook disappoint investors

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, , ) = shares=20 plunged nearly 15% in after-hours trading Tuesday after the report came = out. The=20 stock had already given up nearly 20% of its value since peaking near = the $28=20 mark a month ago.

The chipmaker reported fourth-quarter net income of $2.27 = billion,=20 or 38 cents per share, compared with a profit of $1.5 billion, or 26 = cents per=20 share, for the year-ago period. The company also reported revenue of = $10.71=20 billion, compared with $9.69 billion for the same quarter last year. =

Analysts had expected Intel to report earnings of 40 = cents per=20 share on revenue of $10.84 billion, according to Thomson Financial. =

The chipmaker attributed to the lower-than-expected = results partly=20 to competitive pricing in the market for NAND flash memory chips, which = are used=20 for such devices as cell phones and digital music players. Intel CEO = Paul=20 Otellini said the company remained upbeat about near-term opportunities, = although he also pointed to broader concerns about a slowing U.S. = economy.=20

"You hear all the pundits saying that the world is going = to go to a=20 trash basket and you worry," CEO Paul Otellini said in a call with = analysts.=20 "Maye a self-fulfilling prophecy. At this point we don't see anything on = the=20 horizon. ... If there's any near-term concern, I think it tends to be = focused on=20 the U.S. market. ... Our customers, at lest, and we don't see tht = bleeding over=20 at this point in time. It would be imprudent not to be cautious about = it,=20 though.

Otellini noted, however, that the company is not seeing = problems in=20 the PC space, which enjoyed a strong year in 2007.

"I think pretty clearly that our view of [the first = quarter] is not=20 being clouded by a pessimistic view of computing," he said on the call. =

Intel's revenue fell below the mid point of its guidance = of between=20 $10.5 billion and $11.1 billion.

The Santa Clara, Calif.-based technology company said it = expects=20 first-quarter revenue of between $9.4 billion and $10 billion. The = midpoint of=20 Intel's guidance, $9.7 billion, is below the current consensus estimate = of $9.97=20 billion.

Analyst Roger Kay of Endpoint Technologies Associates = said the=20 company reported "good profit, but light revenue and a lighter outlook, = which is=20 based on market conditions."

Analyst Crawford Del Prete of International Data Corp. = echoed this=20 view saying, "I think more than anything, it's the outlook that Intel = provided=20 that is of concern."

"Revenue growth for the fourth quarter was pretty much in = line with=20 expectations, but given the skittishness that everyone has on future = demand, the=20 fact they gave an outlook in the $9.4 billion to $10 billion range was a = disappointment over the $10 billion expected for next quarter," he said. =

Intel appears to have been affected by the competitive = pricing in=20 the NAND flash memory chip market which has led to falling average = selling=20 prices.

Intel Chief Financial Officer Stacy Smith said the "NAND = pricing=20 environment was quite a bit more challenging that we thought." 3D"End

=20

Benjamin Pimentel is a MarketWatch = reporter=20 based in San Francisco.

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Intel results, outlook disappoint investors -=20 MarketWatch