Intel Cuts Q1 Revenue Outlook

(RTTNews) - Chip-maker Intel Corp. (INTC), Thursday lowered its first-quarter revenue outlook, citing weaker-than-expected demand for business desktop computers and lower inventory levels across the personal computer supply chain. Shares of Intel are currently trading down over 4 percent on the Nasdaq.

Intel has been negatively impacted by slowing demand for PCs and notebooks as tablets and smartphones continue to gain popularity. The company has also invested heavily to diversify its portfolio to include chips for smartphones and tablets, however, its chips are not so popular among smarthphone and tablet makers.

Santa Clara, California-based Intel now sees first-quarter revenues of $12.8 billion, plus or minus $300 million, down from a prior forecast of $13.7 billion, plus or minus $500 million. Analysts polled by Thomson Reuters currently expect revenues of $13.7 billion for the -quarter.

Last year, Microsoft Corp. (MSFT) ended its technical support for the aging Windows XP operating system, which Intel expected would help boost its business as consumers upgrade their computers. However, Intel said the Windows XP refresh in small and medium business were lower-than-expected. The challenging macroeconomic and currency conditions, particularly in Europe, also impacted its business, the company said.

The data center business is in line with expectations, the company noted in the statement.

The company maintained its gross margin guidance at 60 percent, plus or minus a couple of percentage points, as lower personal computer sales volume will be offset by higher average selling prices.

INTC is currently trading at $30.97, down $1.36 or 4.22%.