Intel revises figures upwards
That compares to the previous projection of $8.6bn (€7.1bn) to $9.2bn (€7.6bn).
The improved figures are primarily driven by ongoing strong demand for notebook products.
The group got a welcome boost too with the announcement that Macintosh is to use Intel in its computer range.
The biggest chip maker in the world has also indicated a modest increase in the operating margins.
Gross margin for the second-quarter is expected to be approximately 57% plus or minus a point, as compared to the previous expectation of 56% plus or minus a couple of points.
Gains from equity and other investments will add an additional $100 million (€82.5m) to earnings of the second three months against an earlier figure of approximately $70m (€57.6m).
The group expects it will benefit from a lower tax charge which will be down to about 26% as compared to the 31% previously anticipated by the group.
Looking further out the tax rate for the third and fourth quarters is expected to be slightly lower than the previous expectation of approximately 31%.
Intel’s second quarter ends July 2, 2005.
It first published the outlook with the group’s first quarter figures which it announced in late April.
At the time it reported net profits of $2.15bn (€1.8bn) for the first quarter of 2005, up 25% on the same period last year. Revenues were lifted by strong demand for mobile computer chips.
Intel said its earnings amounted to 34 cents (€0.28) a share, better than the average Wall Street estimate of 31c (€0.26) per share. Sales in the quarter to April 2, 2005 hit $9.4bn (€7.8bn), up 17%.
Intel’s first quarter included an additional week of business because 2005 is a 53-week fiscal year.
The group announced Craig Barrett, current chief executive is to step down. Shareholders have approved Paul Otellini as chief executive officer of the group.
