Intel hints at recovery with increased revenue forecast

Intel hints at recovery with increased revenue forecast

Intel has raised its revenue expectations for the third quarter, citing strong demand for PC and server processors.

The company now expects third-quarter revenue to come in between $US7.3 billion and $US7.8 billion. During the presentation of Intel's second-quarter results on July 15, the company said it expected to take in between $US6.9 billion to $US7.5 billion.

"This points to a quarter that will be better than anticipated, and a pleasant surprise given the business conditions we have seen the last two years," Intel's chief financial officer, Andy Bryant, said.

The Intel Architecture business had seen stronger-than-expected demand, Intel said.

This division comprises all of Intel's desktop, notebook, and server processors, and has been responsible for all of the company's profits for some time.

Sales of communications processors are still weak, the company said.

The semi-conductor industry is feeling a little better about itself these days.

Gartner recently raised its expectations for semi-conductor revenue growth in 2003 to 11 per cent for the year.

PC sales are picking up, albeit slowly, and demand for semi-conductors is increasing at fabrication plants, which have raised their utilisation rates in the last month.

Bryant declined to say whether a broad-based recovery was taking place, but joked that Intel will probably be the last company to say a recovery is under way.

The semi-conductor industry geared up in last year's second quarter for a recovery that never materialised, which caused an inventory problem at Intel rival Advanced Micro Devices.

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