Intel this morning announced the third-quarter expected revenue to be below the company’s previous outlook as a result of weaker than expected demand in current challenging macroeconomic environment. The company now expects third-quarter revenue to be $13.2 billion, plus or minus $300 million, compared to the previous expectation of $13.8 billion to $14.8 billion.
The company’s expectation for third-quarter gross margin is now 62 percent, plus or minus one percentage point; lower than the previous expectation of 63 percent, plus or minus a couple of percentage points while expectations for R&D and MG&A spending and depreciation in the third quarter remain unchanged.
The full-year capital spending is expected to be below the low-end of the company’s previous outlook of $12.1 billion to 12.9 billion, as the company accelerates the re-use of existing equipment to the 14nm node.
