U.S. gloom as Intel lowers outlook
High-tech bellwether Intel Corp. has lowered its financial projections for the third quarter, providing the latest sign of the U.S. economy's doldrums.
The computer chip giant said Thursday 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 September 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 to 60 percent, down from its previous estimate of 58 to 62 percent.
Intel isn't living up to expectations because the global economy appears to be losing steam, said Andy Bryant, Intel's chief financial officer. "What we are seeing is pretty uniform around the world," Bryant told analysts during a Thursday conference call.
