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Friday, September 07, 2012
Intel Lowers Revenue Outlook On Weak PC Demand


Intel on Friday announced that third-quarter revenue is expected to be below the company's previous outlook as a result of weaker than expected demand in a challenging macroeconomic environment.

The company now expects third-quarter revenue to be $13.2 billion, plus or minus $300 million, compared to the previous expectation of $13.8 billion to $14.8 billion.

Relative to the prior forecast, the company is seeing its customers reducing inventory in the supply chain versus the normal growth in third-quarter inventory; softness in the enterprise PC market segment; and slowing emerging market demand. Intal said the data center business was meeting expectations.

The company's expectation for third-quarter gross margin is now 62 percent, plus or minus one percentage point; lower than the previous expectation of 63 percent, plus or minus a couple of percentage points.

Expectations for R&D and MG&A spending and depreciation in the third quarter remain unchanged, Intal added.

Full-year capital spending is expected to be below the low-end of the company's previous outlook of $12.1 billion to 12.9 billion, as the company accelerates the re-use of existing equipment to the 14nm node.


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