Intel has raised its revenue guidance for the second quarter to the high end of its previous range, citing stronger than expected demand for flash memory.
The company now expects to record a result between $US8 billion and $US8.2 billion in the second quarter. During its first-quarter earnings results call, Intel said it expected to record between $US7.6 billion and $US8.2 billion in second-quarter revenue.
"The results are a little better than typical for a second quarter," Intel chief financial officer, Andy Bryant , said.
The second quarter was usually the slowest quarter of the year for chip and PC companies, and PC processor demand had been about where Intel predicted it would fall, Bryant said. However, demand was up about 19 per cent from the second quarter of 2003, he said.
Improved flash memory demand had led to higher revenue than expected within the Intel Communications Group, Bryant said. Intel apparently has recovered from a series of pricing missteps last year that hurt its flash memory revenue.
The company hadrepaired relationships with its flash memory customers who balked at price increases Intel implemented at the beginning of last year, Bryant said.
"I think we've made real progress on flash in the last six months," Bryant said. However, the increase in flash memory revenue could also be attributed to stronger worldwide demand.