Intel lowers revenue forecast, blames Europe
- 07 June, 2002 08:13
Intel hedged its second quarter revenue forecast lower on Thursday, citing soft demand for its chip technology in Europe as the cause.
Intel, based in Santa Clara, California, now expects to report total revenue between $US6.2 billion and $6.5 billion for its second fiscal quarter, to June 29. The company had earlier predicted it would post revenue of between $6.4 billion to $7.0 billion for the period, Intel said in a statement.
Overall, the company's sales are on the "low end" of what it normally sees in the second quarter, according to the statement. Weak demand for products in Europe is the main cause for the lowered expectations. Intel said it expects to see a stronger second half of the year.
The company also said acquisition-related costs and other charges are expected to be $US230 million for the quarter -- higher than a previous forecast of $115 million in charges.
Shares of Intel fell by more than 4 per cent during Thursday's trading, before the revenue forecast statement was issued, to close at $27 per share on the Nasdaq exchange.