Intel lowers first quarter revenue outlook

The company now expects first quarter revenue to be USD 12.8 billion, plus or minus USD 300 million, compared to the previous expectation of USD 13.7 billion, plus or minus USD 500 million. The change in revenue outlook is a result of weaker than expected demand for business desktop PCs and lower than expected inventory levels across the PC supply chain. Intel is forecasting the mid-point of the gross margin range to remain at 60 percent, plus or minus a couple of percentage points, as lower PC unit volume is offset by higher platform average selling prices. Expectations for R&D and MG&A spending and depreciation in the first quarter remain unchanged.