Chip giant Intel gave the industry another dose of bad news by cutting guidance for the third quarter.
Intel Cuts 3Q Forecast Amid Sales Slump
The high-tech comeback is beginning to look like a mirage. Computer chip giant Intel Corp. delivered the latest sign of a high-tech malaise late Thursday as management lowered the company's financial projections after concluding businesses and consumers aren't in a spending mood...
Santa Clara-based Intel said its third-quarter revenue will range from $8.3 billion to $8.6 billion. Management previously forecast revenue ranging from $8.6 billion to $9.2 billion for the three-month period ending Sept. 25. The mean revenue estimate among industry analysts had been $8.9 billion, according to Thomson First Call. Adhering to its usual practice, Intel didn't provide precise earnings guidance in its update, but management warned gross profit margins are sagging. The company expects the third-quarter margin to range from 56 percent to 60 percent, down from its previous estimate of 58 percent to 62 percent.
Chartered Semiconductor also made an announcement recently, but fortunately did not add to the gloom in the chip industry.
Chartered Semi reiterates 3rd-qtr outlook
Chartered Semiconductor Manufacturing Ltd., the world's third-largest supplier of custom-built microchips, on Thursday affirmed its third-quarter outlook originally issued in July. The Singapore-based firm said it sees third-quarter revenue of about $256 million and maintained its quarterly net profit outlook.
We are getting to the end of the quarter, so expect more companies coming forward with updated guidances. The question, of course, is whether they provide any surprises and what kind.