Intel narrows Q3 revenue forecast within expectations

Intel narrows Q3 revenue forecast within expectations

Intel's third quarter is shaping up as the company expected, and it narrowed its revenue guidance Thursday.

Intel narrowed its forecast for third-quarter revenue last week, staying within the range it provided in July for a solid increase in revenue amid concerns about supply constraints.

Revenue will be between $US9.8 billion and $US10 billion, Intel's chief financial officer, Andy Bryant, said.

Intel had previously expected revenue to come in between $US9.6 billion and $US10.2 billion when it reported its second-quarter results earlier this year.

The midpoint of that range, $US9.9 billion, would represent a 17 per cent increase over the $US8.47 billion in revenue Intel posted in last year's third quarter.

Demand remained strong across all regions of the world, Bryant said.

The third and fourth quarters of the calendar year were usually the strongest quarters for PC and chip companies, and the third quarter of this year was no exception, he said.

As a result, Intel's ability to supply chipsets was still constrained, Bryant said.

Intel said last month that it was temporarily pulling back from the production of low-end chipsets in order to devote that manufacturing capacity toward higher-end processors and chipsets.

On the microprocessor side, supply was mostly balanced with demand, but the need for chipsets was still outpacing Intel's ability to build them, Bryant said.

Chipset supply would probably be tight through the end of the year until new manufacturing capacity got going at the beginning of 2006, he said.

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