Intel cuts its Q3 revenue forecast by about $1 billion - wilsonfole1966

Intel beardless about a zillion dollars off its third-fourth part revenue forecast on Friday, blaming the global thriftiness for slowing gross sales. IT will announce plangent results for the canton on October 16.

The company had previously predicted ordinal-quarter revenue of between US$13.8 billion and $14.8 billion, but connected Friday lowered its figure to between $12.9 one million million and $13.5 trillion.

In last twelvemonth's third draw and quarter, Intel reported record tax income of $14.2 jillio, just past the second quarter this year revenue had slipped to $13.5 billion.

Intel said it would usually expect its customers to be raising inventory in the supply string at this season, just instead they are cutting back. Enterprise PC sales are soft, and demand for products settled on Intel chips is slowing in emerging markets, the company said.

Market watcher IHS iSuppli also five-pointed to reduced necessitate for PCs and related electronic components final stage month, when it said it now anticipated global semiconductor sales to shrink by 0.1 percent this year, kind of than grow by up to 3 percent as it had antecedently forecast. This year will be the first year of decline in semiconductor sales since 2009, the company warned.

The economic situation has remov semiconductor manufacturers in Europe and Japan harder than it has hit Intel, iSuppli said earlier this hebdomad in a round-up of second-quarter semiconductor unit sales figures.

European chip makers power saw their second-quarter revenue fall by an average of 8.3 percent twelvemonth on year, compared to a 3.1 percent rise at Intel for that quarter. STMicroelectronics' revenue cut down 16.4 percentage, while at Infineon Technologies second-quarter revenue was 12.9 percentage down on a year in the beginning, iSuppli said. Nipponese semiconductor suppliers, meanwhile, saw revenue drop 7.5 pct for the Sami menses.

A continued decline in revenue could too hit profitability, Intel said. IT narrowed its forecast for third-quarter margin of profit to between 61 percent and 63 percent, from a old forecast of 61 per centum to 65 percent.

One bright spot for Intel is the keep company's information focus on business, which is meeting tax income expectations, the company said.

Intel same spending on enquiry and happening mergers and acquisitions will stay on unchanged from the previous forecast, while capital spending for the full year will fall below past forecasts as the companion finds ways to reuse existing equipment in more advanced manufacturing processes.

Source: https://www.pcworld.com/article/461153/intel_cuts_its_q3_revenue_forecast_by_about_1_billion.html

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