INSTANT VIEW: Intel again warns on outlook

NEW YORK (Reuters) - Leading U.S. semiconductor maker Intel Corp warned that its fourth-quarter revenue would lag expectations, further slashing estimates that it had already cut once in November.

Intel shares were down 78 cents, or 5.1 percent at $14.59 in early trading on the Nasdaq.

The following is reaction from industry analysts and investors:

KIM CAUGHEY, SENIOR ANALYST, FORT PITT CAPITAL GROUP, IN

PITTSBURGH, WHICH MANAGES ABOUT $800 MILLION. THE FIRM DOES NOT

HOLD INTEL SHARES

"It's not a huge surprise. In their mid-quarter update they had said it was soft. Over the past couple of days I have seen a lot of sell side analysts bringing down their expectations for the PC-oriented part of technology."

"Intel is probably still well positioned, given their strong balance sheet."

"Intel has seen this too. They've taken some steps in the recent past to skinny down expenses."

"It shows that IT departments are being very careful with their dollars. We would still expect purchasing to go on. I don't think it's going to go to zero."

"PCs are kind of nodes. They are out at the end of the chain. it looks like money is still being spent on the data center."

"The contracts that companies like CA, BMC and IBM write for businesses span several years, so it's annuity spending. Just because things are getting bad, it doesn't mean you can get out of those contracts. Anybody who has an annuity like revenues would probably be a good place to look for tech value at this point."

TIM GHRISKEY, CHIEF INVESTMENT OFFICER, SOLARIS ASSET

MANAGEMENT, IN BEDFORD HILLS, NEW YORK, WHICH MANAGES ABOUT $2

BILLION,

"Clearly we are going to be in an ugly period for corporate earnings. That shouldn't be a surprise to anybody.