Intel Midquarter Revenue Guidance At High EndIntel Midquarter Revenue Guidance At High End

Intel said Thursday that its first-quarter revenue would be in the upper range of its previous guidance but down slightly sequentially because of "seasonal patterns."

Andy Bryant, executive VP and CFO, said in a teleconference that revenue for the quarter is expected to be between $9.2 billion and $9.4 billion, at the high end of the company's January guidance of $8.8 billion to $9.4 billion.

Revenue is expected to be 2% to 4% less than the $9.6 billion recorded in the fourth quarter of 2004, but up 14% to 16% from the first quarter of 2004. The decrease in first-quarter revenue is consistent with normal seasonal revenue patterns, Bryant said.

The company's gross margin in the first quarter is expected to be approximately 57%, compared to the earlier expectation of 55%, primarily because of lower-than-expected startup costs associated with its 65-nanometer manufacturing process.

For the year, Intel expects gross margin to be approximately 58%, with R&D costs at $5.2 billion.