We expect commentary regarding the third quarter to be conservative - we could see revenue growth targeted for the low single digits (in percentage) and continued weakness in gross margin as the company works to bring inventory levels down.
We currently forecast what we believe is a 'reasonable' recovery, which includes assumptions for slightly below-average sequential growth in the third quarter of 3 percent, above average sequential growth in the fourth quarter of 4 percent, and a fairly typical first-year recovery in 2003.
Demand appears to be tracking better than we had anticipated.
Essentially all of the upside came from non-operating earnings that were better than Intel had indicated it would see.
We also think that the Street's fourth-quarter 2002 expectation of 17 cents in earnings per share is unreasonably high.
The impact on the bottom line is going to be minimal in the short term. It has large existing businesses in the analog and wireless markets already.
Copyright © 2024 Electric Goat Media. All Rights Reserved.