To: Johnny Canuck who wrote (39919 ) 7/17/2003 1:51:50 AM From: Johnny Canuck Read Replies (1) | Respond to PC demand buoys Intel earnings "While the markets for our communications products are still lagging, our Intel Architecture business is performing better than expectations." Processor shipments and average prices were about the same as in the first quarter, Intel said. [Harry: This means stabilization of prices, which is The quarterly results included the company's best performance to date in the Asia-Pacific region and the shipment of 1 million Pentium M processors. The Pentium M is Intel's newest mobile processor and the core of its Centrino family of chips for wireless notebooks. Intel also believes that it gained share in chipsets and motherboards, Otellini said. Intel's Communications Group and Wireless Communications and Computing Group, which sell networking and wireless chips, respectively, both saw revenues decline on a year-over-year basis. Flash memory revenues, in one example, declined during the quarter. Its outlook for the third quarter is for revenue to come in between $6.9 billion and $7.5 billion, marking a sequential increase, while gross margins should also improve. Typically, revenue for Intel increases from the second to the third quarter. During the past five years, Intel has seen its revenue increase by an average of 7 percent between the second and third quarters, Bryant said. Signaling that the chipmaker believes times are getting better, the company will resume a program to give its employees home PCs. Intel put the program on hold during 2001 after doling out PCs to only half of its employees. It will now make good on its promise to the rest of its employees, Bryant said. [Harry: Interesting even Intel had no confidence in the Despite expecting solid processor sales and seeing some potential for an increase in sales of flash memory, Intel executives are still reluctant to declare that an economic or PC market recovery is afoot.
