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Intel sees Q1 revenue lower than expected
Fri Mar 3, 2006pm ET

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyid=urn:newsml:reuters.com:2...

NEW YORK, March 3 (Reuters) - Intel Corp.(INTC.O: Quote, Profile, Research), the world's biggest chip maker, on Friday warned that its first-quarter revenue would likely fall short of expectations, citing weaker-than-expected demand and a dip in market share.

Intel said in a statement that its revenue would be between $8.7 billion and $9.1 billion. Previously the company had forecast revenue in a range of $9.1 billion to $9.7 billion.

As a result, the company said it no longer stands by its previous outlook as stated in January.

Intel, based in Santa Clara, California, said it expects its first-quarter gross margin to be hurt by the change in revenue. Expenses are also expected to be lower than previously forecast due to lower spending.

Shares of Intel fell 1.5 percent to $20.18 in trade on the Inet system before the Nasdaq stock market opening.



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