Jump in Flash Sales
Flash sales, meanwhile, jumped 40 percent from the previous quarter to $587 million, and were part of the justification for Intels midquarter announcement that the midpoint for its revenue guidance had been increased to $8.1 billion. Flash has also boosted income for rivals such as Advanced Micro Devices Inc. Click here to read more. Although Intels revenue base has broadly diversified in recent years into communications, networking and enterprise semiconductor products, the chip giant is still regarded as a bellwether for the PC market."Many of our brethren on the sell side have already concluded, perhaps for different reasons, that [Intel] will not be able to achieve their daunting ramp of 50 percent Grantsdale-based desktop PCs in 4Q," analyst Erach Desai of American Technology Research wrote in a note to clients before Intel reported second-quarter earnings. Click here to read about PCs based on the new Grantsdale and Alderwood chip sets. "In any event, there is little doubt that the PC market will continue to be in a funk through 3Q," Desai wrote. "Yes, there will be the usual back-to-school season driving lower-end notebooks. However, the corporate market will only add PCs when and where it is absolutely necessary, until the kinks have been worked out of the Grantsdale systems." Intel said it expects a crossover in total microprocessor shipments during the third quarter to its new 90-nm technology and that the vast majority of its microprocessor shipments will be converted to 90-nm technology by the end of the year. Intel also plans to begin production of the companys first 90-nm flash products on 200-mm technology during the third quarter, it said. Intel in May picked up several design teams from microprocessor design house Elbrus MCST. Click here to read more. Intel expects an increase in revenue during the third quarter to between $8.6 billion to $9.2 billion, the company said, as it plans to more than double its Prescott shipments during the quarter. A version of its "Nocona" processor for servers is also expected in the "next few weeks" or in August, Otellini said. Editors Note: This story was updated to include more details about Intels finances and company officials comments during a conference call with analysts. Check out eWEEK.coms Infrastructure Center at http://infrastructure.eweek.com for the latest news, views and analysis on servers, switches and networking protocols for the enterprise and small businesses.
One of the key transitions for Intels shift to next-generation platforms has been its Intel 915 or "Grantsdale" chipset, which suffered a glitch or "manufacturing excursion" late in the quarter. The glitch, which affected the IHC (I/O Controller Hub), has been fixed, and Intel resumed shipments. But the delay cost the company $38 million in one-time charges.