Original URL: http://www.theregister.co.uk/2003/03/07/intel_tightens_q1_forecast/

Intel tightens Q1 forecast

Falling Flash sales take their toll

By Tony Smith

Posted in Channel, 7th March 2003 09:45 GMT

Intel yesterday narrowed its guidance on its current fiscal quarter, trimming its revenue expectations from a broad $6.5-7.0 billion to a tighter $6.6-6.8 billion.

The new guidance is in track with the company's previous statement, but mean has dropped from $6.75 billion to $6.70 billion, a fall of some $50 million.

Intel's current quarter ends 29 March. During the period, CPUs and chipsets have sold as well as the company anticipated, following established seasonal trends. Processor sales are following a sequential decline of about five per cent, Intel CFO Any Bryant told analysts yesterday.

However, Flash memory shipments have dipped further than thought. Bryant said that was a result of price increases of between 20 and 40 per cent made at the start of the quarter.

Margins will dip slightly "below the midpoint of the 50 per cent range" thanks to increased Flash inventory.

Intel expects one-off charges to total $100 million for the quarter, down from its previous prediction of $125 million. ®