Intel on Target for First Quarter

Giant chip maker says revenues should come in between $6.6 billion and $6.8 billion for the company's first quarter.

Giant chip maker Intel Corp. on Thursday said revenues for the companys first quarter should come in between $6.6 billion and $6.8 billion, which is close to what had been projected earlier.

Officials with the Santa Clara, Calif., company in January said they expected revenues for the first quarter—which ends March 29—to come in between $6.5 billion and $7 billion.

In a prepared release, the chip maker said its Intel Architecture processor business is doing slightly better than expected, while its communications business is running below expectations, due to lower-than-expected demand for flash memory.

Intel in January hiked flash memory prices as much as 40 percent. During a conference call with financial analysts, board chairman Andy Grove said that the company expected there would be a drop-off in flash sales, but was somewhat surprised by the extent of the drop-off.

Still, Grove, an Intel co-founder and former company CEO, said that Intel officials expect that as demand for such devices as cell phones and personal digital assistants rise, so will the demand for flash memory.

However, the weaker-than-expected flash memory performance didnt badly hurt Intels overall performance.

"If we hadnt seen the softness in flash, we couldve said everything is a little up," Grove said.

Last quarter, Intel generated $7.2 billion in revenue, with income coming in at $1.1 billion.

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