Santa Clara, California–Intel’s fourth quarter revenue is anticipated to be below the company’s previous expectation, primarily due to a slowing worldwide economy impacting PC demand, the company reported. As a result of recent large cancellations by customers worldwide, the company now expects revenue for the fourth quarter to be flat, plus or minus a couple of percentage points, with third quarter revenue of $8.7 billion. This is lower than the previous expectation that fourth quarter revenue would be up 4 to 8% from third quarter revenue.

The company’s expectation for gross margin percentage for the fourth quarter remains 63%, plus or minus a point. Expenses (R&D, excluding in-process R&D, plus MG&A) in the fourth quarter are now expected to be approximately flat with third quarter expenses of $2.3 billion. This is lower than the previous expectation that fourth quarter expenses would be up 6 to 8% from third quarter expenses, due primarily to a slowdown in discretionary spending and lower revenue and profit dependent expenses. Interest and other is expected to be approximately $675 million for the fourth quarter, down from the company’s previous expectation of $950 million, due to lower than expected realized gains on equity investments as equity market levels fell during the quarter.