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Intel expects to miss guidance

Posted: 08 Mar 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Spencer Chin? Intel?

Intel Corp. disclosed last week that Q1 revenue will range between $8.7 billion and $9.1 billion, compared to the previous guidance of $9.1 billion to $9.7 billion. It cited weaker than expected demand and a slight loss of market share.

Intel said it expected Q1 gross margins to be adversely affected by the change in revenue. Expenses are expected to be lower than previously forecast due to lower revenue- and profit-related spending.

The dismal Q1 outlook could draw further wrath from analysts, who in the Q4 of 2005 expected higher sales and were disappointed in the mid-Q4 guidance, the company said.

Intel has been losing market share to rival Advanced Micro Devices Inc. (AMD), particularly in desktop processors for the consumer market. On Thursday, search engine company Google Inc. said it would switch its internal servers from Intel to AMD processors, giving Intel's main rival a much-needed foothold in the corporate IT sector.

- Spencer Chin
EE Times




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