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Intel lowers first quarter expectations, Chartered remains firm |
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Mar 03, 2006 at 03:49 PM |
 Intel Corporation expects that its first-quarter revenue will be between $8.7 billion and $9.1 billion, as compared to the previous expectation of between $9.1 billion and $9.7 billion, primarily due to weaker than expected demand and a slight market segment share loss.
The company expects the first-quarter gross margin percentage to be adversely impacted by the change in revenue. Expenses (R&D plus MG&A) are expected to be lower than previously forecast due to lower revenue- and profit-related spending.
The announcement is made just before Intel goes into its "Quiet Period" before its official results.
Intel adds that its business outlook, published in the company's fourth-quarter earnings release dated Jan. 17, 2006, and in its Form 10-K for the year ended Dec. 31, 2005, no longer reflects the company's current expectations. The company plans to provide a new outlook when it reports first-quarter financial results on April 19, 2006.
Meanwhile, Singapore foundry Chartered Semiconductor Manufacturing reaffirmed its first-quarter 2006 guidance, which was originally provided on January 27, 2006. Net income is forecast to be "around $15 million" (i.e. +/-$5 million) on revenues of $356+/-4 million.
"The quarter is progressing essentially in line with what we had anticipated earlier and therefore we are reiterating the guidance originally provided in January," said George Thomas, senior vice president & CFO of Chartered.
Chartered plans to release first quarter 2006 results on April 21, 2006.
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