The Intel Corporation has announced that its revenue in the second quarter is likely to be between $0.2 billion and $0.5 billion less than it had originally predicted.
In a planned update to the company's business outlook for the second quarter, which ends June 29th, the company said the lower revenue expectations were due to a fall-off in sales in Europe.
As a result, the update says, Q2 gross margin percentage is expected to be approximately 49 per cent, compared to the previous range of 53 per cent
"Intel expects second-quarter revenue to be between $6.2 billion and $6.5 billion, compared to the previous range of $6.4 billion to $7.0 billion. The lower revenue expectation is primarily due to softer than expected demand in Europe," the update reads.
"Microprocessor units are at the low end of the normal seasonal pattern, with a weaker than expected mix. Intel's enterprise, mobile and communications businesses are in line with expectations. The company continues to expect a seasonally stronger second half."
Amortization of acquisition-related intangibles and costs is expected to be $230 million in the second quarter, compared to the previous expectation of $115 million. The full year amount is expected to be approximately $530 million, compared to the previous expectation of $440 million.
Intel's second-quarter 2002 Business Outlook was originally published in the company's first-quarter 2002 earnings release
The company says it intends to publish an earnings press release on July 16, 2002, and hold a related analysts' conference call
However, between the close of business June 14, 2002, until publication of the earnings press release, Intel will observe a "Quiet Period", a period in which Intel representatives will not comment concerning the outlook or Intel's financial results or expectations.
