Features

Intel affirms first-quarter revenue guidance

By Matthew Fordahl, The Associated Press
Friday March 08, 2002

SAN JOSE— Chip-maker Intel Corp. tightened the range of its first-quarter sales forecast Thursday, saying demand for PC processors remains stable but the communications chip business is weak. 

The Santa Clara, Calif.-based company said it expects revenue to be between $6.6 billion and $6.9 billion — within the company’s previous guidance of between $6.4 billion and $7 billion for the period. 

Analysts are expecting sales of $6.77 billion for the first quarter, according to a survey by Thomson Financial/First Call. 

That would be an increase of 1.4 percent from the $6.68 billion reported in the same period last year, but a 3.1 percent decrease from the $6.98 billion last quarter. 

Intel did not provide any earnings estimates. Analysts, however, are expecting a profit of 14 cents a share, down 12.5 percent from the 16 cents a share profit reported in the first quarter of 2001. 

Revenues typically fall as much as 10 percent in the quarter following the holiday. 

Intel may be feeling the lingering effects of stronger-than-expected computer buying during the holidays. Now PC makers are replenishing their supplies, according to some analysts. 

The company also is expected to reap rewards from new technologies that not only make its microprocessors faster and more competitive, but also less expensive to build. 

Earlier this week, Intel introduced processors for mobile computers based on its flagship Pentium 4 architecture. The company also recently unveiled a Pentium 4-based chip for servers. 

Shares of Intel gained 2 cents, to $32.98 in Thursday trading on the Nasdaq Stock Market. In extended trading, they lost 55 cents. 

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On the Net: 

Intel Corp.: http://www.intel.com