Intel has raised its revenue guidance for the second quarter to the high end of its previous range, citing stronger-than-expected demand for flash memory.
The company now expects to record between $8bn and $8.2bn in the second quarter. During its first-quarter earnings results call, Intel predicted seond-quarter revenue of between $7.6bn and $8.2bn.
The second quarter is usually the slowest quarter of the year for chip and PC companies, and PC processor demand has been about where Intel predicted it would fall. However, demand is up about 19% from the second quarter of 2003.
Improved flash memory demand has led to higher revenue than expected within the Intel Communications Group, said chief financial officer Andy Bryant. Intel apparently has recovered from a series of pricing missteps last year that hurt its flash memory revenue.
The company has repaired relationships with its flash memory customers who balked at price increases implemented at the beginning of last year.
"I think we've made real progress on flash in the last six months," Bryant said. However, he added that the increase in flash memory revenue can also be attributed to stronger worldwide demand.
Tom Krazit writes for IDG News Service