Intel lowers third quarter revenue expectations

intel logo Intel lowers third quarter revenue expectations

Intel has lowered its revenue forecast for the third quarter from between $13.8 billion and $14.8 billion to between $12.9 billion and $13.5 billion, blaming slow demand for the weaker financial figures.

Intel has lowered its revenue forecast for the third quarter from between $13.8 billion and $14.8 billion to between $12.9 billion and $13.5 billion, blaming slow demand for the weaker financial figures.

 
The company's expected gross margin for the third quarter will drop from 63 percent, plus or minus a couple of percentage points, to 62 percent, plus or minus one percent. 
 
Capital spending for the entire year will also drop as a result, down from the previous outlook of between $12.1 billion and $12.9 billion to below the former number.
 
 Intel lowers third quarter revenue expectations
 
Intel said that the change in financial prospects was because of a “challenging macroeconomic environement,” with customers reducing inventory in the supply chain rather than the traditional growth experienced in third-quarter inventory. Softness in the enterprise PC market and slow demand in emerging markets were also seen as key factors.
 
Despite the underperformance, Intel said that its data centre business is meeting expectations.
 
The company also warned that its final figures could vary, depending on demand, competition, capacity utilisation, variations in inventory valuation, economic and political conditions of countries where Intel operates, marketing and compensation expenses, acquisitions and divestitures, and product defects.
 
Intel shares dropped by $0.80, or 3.17 percent, to $24.30 at the time of writing.