Intel Q1 revenue to fall at low end of guidance

Intel narrowed its expectations for first-quarter revenue Thursday, staying within the guidance it provided in January but coming in at the low end of that range.

The Santa Clara, California, company expects to take in between US$8 billion and US$8.2 billion for its first quarter, it said in a release. When reporting fourth-quarter results in January, Intel said first-quarter revenue would fall between US$7.9 billion and US$8.5 billion.

Demand for PC and server processors was at the low end of normal seasonal patterns, Intel said. The first half of the calendar year is generally slower for semiconductor companies than the second half, in which the two most important buying periods of the year occur.

Intel's business in Asia-Pacific and Japan was a little weaker than had been expected, accounting for the new guidance, said Andy Bryant, Intel's chief financial officer, in a conference call to discuss the announcement.

Intel's business units in those regions expected the first quarter to defy seasonal patterns and come in about level with the fourth quarter, Bryant said. As a result, they built up larger stores of inventory than they typically would for that time of year and needed to clear out some of the excess, he said.

The first quarter has otherwise fallen in line with Intel's expectations, Bryant said. Corporate spending met the chip maker's forecasts, as companies continued to gradually replace aging IT equipment, he said.

First-quarter 2004 demand for Intel Architecture products has been "significantly higher" than reported in the first quarter of 2003, Intel said. During that quarter, Intel reported revenue of US$6.75 billion. The midpoint of the range for this year's first quarter, US$8.1 billion, represents a 20 percent increase year-over-year, Bryant said.

Demand for communications products such as flash memory and the XScale handheld processors is consistent with the level of demand Intel expected in January, it said.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Tom Krazit

IDG News Service
Show Comments


James Cook University - Master of Data Science Online Course

Learn more >


Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Victorinox Werks Professional Executive 17 Laptop Case

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?