Intel tightens sales outlook, warns of chip shortage

September 9, 2005 – Intel Corp. said its 3Q05 revenues will be in a range of $9.8-$10.0 billion, the midpoint of its previous estimates, growth of roughly 6%-8% from the prior quarter. Gross margins are within the previously-set range of 59%-61%, plus or minus a point. Intel also expects to pay about $250 million in extra taxes during the quarter, related to repatriation of income earned abroad.

The chipmaker noted strong demand for its Centrino chips for wireless-enabled laptop computers, and predicts double-digit year-on-year growth thanks to ongoing demand for notebooks. However, Intel also noted that its chipset supplies will remain strained through 4Q05, mainly from its older fabs and used for processors such as communications chips following efforts to reprioritize chipset manufacturing, and won’t ease until early 2006 when capacity additions are expected to catch up.


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