Chip Demand Strong
Intel Narrows Expected Forecast for Q3
By Mark LaPedus
Silicon Strategies
09/04/2003, 5:00 PM ET
SANTA CLARA, Calif. -- Intel Corp. today narrowed its forecast for the third quarter of 2003.
Intel expects revenue to be between $7.6-to-$7.8 billion, as compared with the previous range of $7.3-to-$7.8 billion announced on Aug. 22.
The company's processor business continues to experience strong "broad-based demand, especially in emerging markets, while demand for communications products remains soft," according to Intel.
The gross margin percentage for the third quarter is expected to be toward the high end of the previous range of 56 percent, plus or minus a couple of points.
Last month, Intel already raised its forecast for the third quarter of 2003. At that time, the company expected revenue to be between $7.3-to-$7.8 billion in the third quarter, as compared to the previous range of $6.9-to-$7.5 billion.
It reported a profit of $896 million, or $0.14 a share, on sales of $6.8 billion, in the second quarter of 2003. It posted a profit of $686 million, or $0.10 a share, on sales of $6.5 billion in the third quarter of last year.
Last month, Intel also said it is experiencing greater-than-expected unit demand for microprocessors--and even spot shortages for parts--in what is turning out to be a surprising quarter for the chip giant. Flash-memory products remain weak, however.
One analyst said he did not expect any surprises in Intel's mid-quarter forecast, but then raised his forecast for rival Advanced Micro Devices Inc. ( see Sept. 3 story ). |
