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Intel Q1 2006 revenue below expectations

Posted on Friday, March 03 2006 @ 19:01:30 CET by

Intel today announced that first-quarter revenue is expected to 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.

Effective with this announcement, Intel has begun its “Quiet Period.” Intel’s 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 Business Outlook when it reports first-quarter financial results on April 19, 2006.

The above statements and any others in this document that refer to plans and expectations for the first quarter and the future involve a number of risks and uncertainties. Many factors could cause Intel’s actual results to differ materially from current expectations, you can read the full list at Intel's financial section.



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