Amwal al Ghad English - 2014-04-16 08:52:42
Intel Corp. (INTC), the world’s largest semiconductor maker, forecast second-quarter sales that may exceed some analysts’ estimates as improving corporate orders help stabilize the declining personal-computer market.
Revenue will be $13 billion, plus or minus $500 million, the company said today in a statement on its website. Gross margin, or the percentage of sales left after deducting the cost of production, will be about 63 percent. On average, analysts had estimated sales of $12.96 billion and gross margin of 59.8 percent, according to data compiled by Bloomberg.
Business at Intel, whose chips power more than 80 percent of the world’s PCs, is picking up as companies upgrade office machines, spurred by Microsoft Corp.’s end to support for its Windows XP operating system. The shift to newer software may be prompting corporations to evaluate their networks and buy more replacement equipment, said Ian Ing, an analyst at MKM Partners.
“Once people got into the mode of upgrading, they decided to take a closer look at their current assets,” said Ing, who has the equivalent of a hold rating on Intel’s stock. “It goes well beyond the XP obsolescence.” More»