Intel CFO: PC Chip Business Stronger In 2H Than 1H

From <A HREF="http://quicken.excite.com/investments/news/story/djbn/?story=/news/stories/dj/20010906/BT20010906007400.htm&symbol=INTC" target="_new">this</A> link:

NEW YORK (Dow Jones)--Intel Corp.'s microprocessor business continues to follow seasonal patterns and is showing more strength in the second half than in the first half of the year, said Andy Bryant, chief financial officer.

The Pentium 4 and the 845 chipset are seeing solid demand and are "ramping to high volume", Bryant told teleconference listeners Thursday as part of Intel's mid-quarter update on the state of its business.

After the close of trading Thursday, Intel, Santa Clara, Calif., said it estimates third-quarter revenue will come in slightly below the midpoint of the range the company provided on July 17. At that time, the chip giant said it expected revenue between $6.2 billion and $6.8 billion.

In a press release issued Thursday, Intel said its microprocessor business continues to follow seasonal patterns, while the flash and networking businesses remain in line with expectations at the beginning of the quarter.

Intel also said that gross margins for the third quarter will be within the range of previous expectations but below the midpoint of the range.

According to Thomson Financial/First Call, analysts on average predict that Intel will post third-quarter earnings of 10 cents a share on revenue of $6.4 billion.

During the teleconference, Bryant noted that third-quarter revenue for Intel's flash and networking businesses is expected to be flat with the second quarter and that the company expects a "later and slower" recovery in those areas. He said Intel is working to restore profitability in those segments.

While many industry watchers said Intel's third quarter is especially back-end-loaded, meaning that most of its business comes in September, Bryant didn't agree. He said the quarter isn't unusually back-end-loaded and that business in July and August were better than expected. This third quarter looks exactly like the third quarter of the last few years, he said.

Bryant did concede that there is still risk to Intel's forecasts, but said that with the strength the company saw in July and August, it is "as comfortable as it can be with the third quarter at this point."

The financial chief said business in Japan has "softened fairly substantially," in the current quarter, but stressed that business in the rest of world is consistent with expectations.

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At last some good news.

-Raystonn


= The views stated herein are my personal views, and not necessarily the views of my employer. =

Yes, but that would only account for business toward the end of August and in September. These would also be expected increases in business. Not only was August _above_ expectations, but so was July. The market may finally be headed back up.

-Raystonn


= The views stated herein are my personal views, and not necessarily the views of my employer. =