Intel Corporation (NASDAQ:INTC), the world’s largest computer chip maker reported strong financial results for the fourth quarter of 2013, however the stock price of the company dropped nearly 5% in the extended hours trading on Thursday.

Tepid guidance

The after-hours decline of the stock was primarily caused by the tepid guidance provided by the company for the first quarter and full year 2014. Intel Corporation (NASDAQ:INTC) projected that it might deliver revenue growth next quarter. The chip maker estimated to achieve $12.8 billion revenue, plus or minus $500 million. The company expects its gross margin around 59% plus or minus 2%. For the full year 2014, Intel said its revenue will be flat.

Doug Freedman, analyst at RBC Capital Markets commented that the full year outlook of the company is “not encouraging” and also noted that its capital expenditures of $11 billion plus or minus $500 million were higher than predicted.

Fourth quarter results

Intel Corporation (NASDAQ:INTC) posted $3.5 billion operating income, an increase of 12% from $3.2 billion a year earlier. The chip maker said its total revenue for the quarter rose 3% from $13.4 billion to $13.8 billion and its gross margin increased from 58% to 62%. Its net income climbed 6% to $2.6 billion or $0.51 earnings per share.

In a statement, Intel CEO Brian Krzanich said, “We had a solid fourth quarter with signs of stabilization in the PC segment and financial growth from a year ago. We’ve built a strong foundation for our business by bringing innovation to the market more quickly across a wide range of computing platforms.”

During the quarter, Intel Corporation (NASDAQ:INTC) said it’s the revenue of its PC client group was flat, but the sales performance of its data center group grew by 8%. Other Intel architecture operating segments delivered 9% growth to $1.1 billion.

The company said its R&D plus MG&A spending increased to $4.8 billion, and its tax rate went up to 26%.

Full year 2013 results

Intel Corporation (NASDAQ:INTC) said its total revenue for the whole year 2013 was $52.7 billion, slightly lower than its $53.3 billion sales in the previous year. Its operating income declined by 16% to $12.3 billion and net income down 13% to $9.6 billion or $1.89 earnings per share. The company’s gross margin was 59.8%.