Intel reports better-than-expected quarter

5 Sep 2003

In what it has described as a better-than-expected third quarter driven by growing PC sales, Intel expects revenue to be between US$7.6bn and US$7.8bn, compared with the previous range of US$7.3bn to US$7.8bn announced on 22 August.

The company said that the Intel architecture business continues to experience strong broad-based demand, especially in emerging markets, while demand for communications products remains soft.

The gross margin percentage for the third quarter is expected to be toward the high end of the previous range of 56pc, plus or minus a couple of points. Intel’s third quarter officially ends 27 September and the company will announce earnings 14 October.

The upbeat outlook is largely driven by sales of PC processors, the company said. Communication chip sales remain soft.

IDC expects 2003 PC shipments, which include desktops, notebooks and servers priced at less than US$25,000, to grow by 8.4pc globally and by 7.2pc in the US. In June, IDC predicted that global shipments would increase by 6.3pc in 2003, compared with 2002, while US shipments would increase by 5.3pc.

By John Kennedy