Thread, Intel Updates Second-Quarter Business Expectations
SANTA CLARA, Calif., June 6, 2002 -- Intel Corporation today provided a planned update to the company's Business Outlook for the second quarter, which ends June 29.
Intel expects second-quarter revenue to be between $6.2 billion and $6.5 billion, compared to the previous range of $6.4 billion to $7.0 billion. The lower revenue expectation is primarily due to softer than expected demand in Europe. Microprocessor units are at the low end of the normal seasonal pattern, with a weaker than expected mix. Intel's enterprise, mobile and communications businesses are in line with expectations. The company continues to expect a seasonally stronger second half.
The second-quarter gross margin percentage is expected to be approximately 49 percent, plus or minus a couple of points, compared to the previous range of 53 percent, plus or minus a couple of points, primarily due to the lower than expected revenue and product mix.
Amortization of acquisition-related intangibles and costs is expected to be approximately $230 million in the second quarter, compared to the previous expectation of $115 million, primarily due to a write-off of acquired intangibles related to Xircom PC cards for wireline networking. The full year amount is expected to be approximately $530 million, compared to the previous expectation of $440 million. All other expectations are unchanged.
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