Number one chipmaker Intel Corporation offered some upbeat news for the tech sector last night, lifting its revenue outlook for the fourth quarter to between $9.3 and $9.5 billion.
The forecast marks a sharp increase from earlier guidance of between $8.6 and $9.2 billion. Intel's mid-quarter update had been widely anticipated because it provides a glimpse of the overall high-tech industry. Its forecast was well ahead of the average analyst prediction of $8.96 billion.
The company said gross profit margins will be in the range of 55 to 57%, unchanged from the 56% in its prior guidance.
Intel said it 'continues to make progress on inventory reduction and expects a net inventory decrease of several hundred million dollars by the end of the quarter.'
The company's bloated inventories earlier this year prompted concerns about Intel's strategy and led to a sharp drop in its stock price.
As for the rest of its outlook for the quarter, Intel said, 'All other expectations are unchanged.'
Additionally, Intel said it was studying the possibility of using a new law allowing US firms to repatriate earnings at a low tax rate of 5.25%. It said 'up to approximately $6 billion of Intel earnings from non-US subsidiaries may be eligible for repatriation at the temporary rate'.
'The company is reviewing the matter and does not yet have formal plans regarding the repatriation,' it added.
* The chief executive of Intel, Craig Barrett, will be in Dublin this weekend to receive a Gold Medal from the Royal Dublin Society for excellence in business.
The award is given to individuals whom the RDS deem have made an exceptional contribution to industry and business here. Previous recipients include Peter Sutherland, Ray McSharry, Michael Smurfit, Tony O'Reilly, Denis Brosnan and Chris Horn.
