Intel's second quarter revenue up due strong notebook demand

Intel expects revenue for the second quarter to be between $9.1 billion and $9.3 billion, as compared to the previous range of $8.6 billion to $9.2 billion, primarily driven by ongoing strong demand for notebook products.

The second-quarter gross margin percentage is expected to be approximately 57 percent, plus or minus a point, as compared to the previous expectation of 56 percent, plus or minus a couple of points. Gains from equity investments and interest and other are expected to be approximately $100 million, higher than the previous expectation of approximately $70 million.

Intel's tax rate for the second quarter is expected to be 26 percent, plus or minus a point, as compared to the previous expectation of approximately 31 percent, primarily due to an increase in estimated research and development tax credits. The tax rate for the third and fourth quarters is expected to be slightly lower than the previous expectation of approximately 31 percent. All other expectations are unchanged.

This Business Update is a scheduled update to the company's Business Outlook for the quarter, which ends July 2. Intel's second-quarter Business Outlook was originally published in the company's first-quarter 2005 earnings release, available at www.intc.com. Intel will discuss this update during a public webcast at 2:30 p.m. PDT today at www.intc.com, with a replay available until July 19.