Feeds

Intel narrows Q1 revenue forecast

Lower guidance

  • alert
  • submit to reddit

Intel issued a business update yesterday to provide a more accurate estimate of the company's first quarter sales. Having previously forecast revenues somewhere between $7.9bn and $8.5bn, the chip giant narrowed its numbers to $8.0-8.2bn.

That puts the new average below the one implied by the previous prediction - and below analyst expectations. Pacific Crest Securities, for example, recently put the range at $8.1-8.3bn. The quarter ends on 27 March.

Intel said demand for its microprocessors "is consistent with the lower end of normal seasonal patterns and significantly higher than in the same period last year". In other words, demand is weaker than the previous quarter, as is usually the case. But the decline is at the bottom end of expectations.

In many ways, Intel has only itself to blame. Putting back the release of Prescott, its 90nm Pentium 4 processor, to February and issuing the part at lower clock speeds than expected can't have helped matters. Delaying the release of 'Dothan', its second-generation mobile Pentium M processor to Q2, will have hurt sales too.

Intel's forecast for the quarter's gross margin remains the same: 60 per cent plus or minus a percentage point. ®

Related Stories

Intel adds more muscle to Xeon MP
Intel promises all-singing, all-dancing 3G phone
Intel Developer Forum Spring '04 - full coverage

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.