Intel Corp’s shares fell on the news that its third-quarter revenue will come short of its forecast, casting a blight of doubt on the semiconductor space that witnessed a burst of growth and enthusiasm during the past year.
The company said it anticipates third-quarter revenues of between $8.3 billion and $8.6 billion as against the previous range of $8.6 billion to $9.2 billion.
The company attributed the revision to a drop in demand, especially from flash memory shipments.
“. Intel is one of the most important barometers around,” commented analyst firm Ovum in a note. “If mobile manufacturers don’t buy its flash memory cards this quarter (which they haven’t been doing), then it is a fair bet we’ll have surprises in that sector soon.”
Intel said it expects about $2.4 billion in revenue instead of the $2.5 billion previously projected.
It has good news on tax, though. “The tax rate for the third quarter is now expected to be approximately 29.5 percent, below the previous expectation of approximately 31 percent, reflecting the expectation that a higher percentage of profits will be generated in lower-tax jurisdictions,” said the company.
