September 4, 2003 2:49 PM PDT

Intel says its revenue is looking up

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Intel has revised its revenue expectations for the third quarter, and the new figures indicate that the chipmaker is having a stronger-than-expected quarter.

The Santa Clara, Calif.-based company said Thursday that revenue for the period ending in September would likely come to between $7.6 billion and $7.8 billion.

Intel first raised its revenue expectations for the quarter in August, when it said its sales for the period would likely be between $7.3 billion and $7.8 billion.

While the upper figure of the range remains the same, increasing the lower figure of the range will likely buoy investors, because the midpoint of the range has risen from $7.55 billion to $7.7 billion. Typically, the midpoint of the revenue range is considered the de facto estimate.

In July, Intel said revenue for the quarter would come to between $6.9 billion and $7.5 billion.

The upbeat outlook is largely driven by sales of PC processors, the company said. Communication chip sales remain soft.

The PC market overall has been on the rebound all year. Research firm IDC said on Thursday that it expects 2003 PC shipments--which include desktops, notebooks and servers priced at less than $25,000--to grow by 8.4 percent globally and by 7.2 percent in the United States.

In June, IDC had predicted that global shipments would increase by 6.3 percent in 2003, compared with 2002, while U.S. shipments would increase by 5.3 percent.

Intel did not change its estimates on gross margin. It expects gross margin to come in at 56 percent, plus or minus a few percentage points.

Intel?s third quarter officially ends Sept. 27. The company will announce earnings Oct. 14.

 

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