Intel narrows quarterly revenue forecast

Intel tightened the range and raised the midpoint of its second-quarter revenue forecast after it saw stronger-than-expected …

Intel tightened the range and raised the midpoint of its second-quarter revenue forecast after it saw stronger-than-expected demand for flash memory chips used mainly in cell phones.

The world's largest semiconductor company said last night it expected revenue to be between $8 billion and $8.2 billion. In April, it predicted revenue of $7.6 billion to $8.2 billion. The company does not release earnings forecasts.

Intel said its processor business is within expectations but "significantly higher" than the same period last year. The communications chip business is "trending above" forecasts due to increased demand for flash memory, the company said.

The flash memory improvement marks a drastic turnaround for Intel, which saw sales decline after it hiked prices at the start of 2003.

READ MORE

Intel also said its income tax expense will be reduced by $60 million during the quarter as a result of the closure of a state income tax audit.

In recent weeks, Intel has released new versions of the Pentium M processors used in its Centrino chip sets and the Mobile Pentium 4 processors for high-powered laptops. It also released an update to its flagship Pentium 4, which now has a top speed of 3.4 gigahertz.