June 4, 2004 – In its mid-quarter update on Thursday, Intel tightened its outlook for 2Q04 revenue to $8.0-$8.2 billion, at the higher end of previous predictions of $7.6-$8.2 billion, due to increasing strength in its flash memory business.

The revised revenues would be flat with the previous quarter, but “significantly higher” than a year ago, and better than the company’s historical second-quarter performance, which has typically been down 2% sequentially, according to CFO Andy Bryant. Also, Intel’s income tax expense will be reduced by about $60 million after the closure of a state income tax audit, which will add about 1 cent/share to the company’s earnings.

Intel said there would be no material changes in inventory, and said all other quarterly expectations would remain unchanged.