Intel Investors - Good News from CeBIT
HANOVER, Germany, March 18 (Reuters) - Intel Corp (NASDAQ:INTC) said on Thursday that it saw no reason to change its outlook for the first quarter of 1999, despite signs of slack demand at two of its largest customers. "We are still comfortable with the estimates we've given," Pat Gelsinger, general manager of the company's desktop products group, told Reuters at the CeBIT trade fair.
Intel in February said demand remains strong although first quarter sales would be down from the fourth quarter's $7.6 billion on seasonal factors. Gross profit margins will also be down slightly from the fourth quarter. In the last several weeks, Compaq Computer Corp (NYSE:CPQ), the world's largest PC maker, said first quarter sales had softened. That followed a report from Dell Computer Corp (NASDAQ:DELL) in which its fourth quarter revenue grew 38 percent but still fell short of expectations.
Gelsinger said some estimates for PC demand may have been off the mark because of the year 2000 glitch that companies are racing to fix before the end of the year. "I think people were expecting an acceleration (of demand) in the first half because of Y2K, and we don't see that now," he said. "We may see that in the second half instead." frankfurt.newsroom@reuters.com)) Copyright 1999, Reuters News Service
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