Intel reported better-than-expected second quarter results, but cut its outlook for the third quarter due to what it described as "a more challenging macroeconomic environment."
The company remained hopeful that new ultrabooks and smartphones would boost growth in the second half.
Specifically, Intel delivered second quarter earnings of $2.8 billion, or 54 cents a share, on revenue of $13.5 billion. Wall Street was expecting earnings of 52 cents a share on revenue of $13.56 billion.
As for the outlook, Intel projected third quarter revenue of $14.3 billion, give or take $500 million. Wall Street was looking for revenue of $14.6 billion for the third quarter. For 2012, Intel said revenue growth will be about 3 percent to 5 percent from 2011. The chip giant had expected revenue growth in the high single digits.
In a statement, Intel CEO Paul Otellini said:
As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment. With a rich mix of Ultrabook and Intel-based tablet and phone introductions in the second half, combined with the long-term investments we're making in our product and manufacturing areas, we are well positioned for this year and beyond.
Analysts have questioned Intel's assumptions given PC demand has been lackluste... [Read more]
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