Intel narrows Q1 revenue guidance

March 7, 2003 —

Intel Corp. reaffirmed its first-quarter revenue guidance Thursday, predicting that slightly higher sales of its PC and server processors will be offset by slightly lower sales of communications processors.

First-quarter revenue should come in between US$6.6 billion and $6.8 billion, Intel said in a statement. That is a narrower range than given during the company's fourth-quarter earnings call in January. At that time, Intel had predicted revenue between $6.5 billion and $7.0 billion.

The communications business has been hurt by slower-than-expected flash memory sales, which has also slightly lowered the company's expected gross margins due to excess inventory. Increased demand for flash memory products in the fourth quarter led Intel to announce in November that it would raise flash memory prices in January.

IDG News Service