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Intel says Sandy Bridge is a revenue risk

Exclusive Chipmaker issues an earnings warning
Fri Aug 27 2010, 17:16

MANUFACTURING SANDY BRIDGE could see process technolgoy execution issues that further reduce an already depressed third quarter financial outcome, Intel has warned.

Intel expects to make over $1 billion less in revenue in the third quarter, according to a statement released today, and it warns of risk factors that could depress results further. In its 13 July report Intel predicted up to $12 billion revenue for the third quarter, or $11.6 billion plus or minus $400 milion.

Now it is saying that its revenues could be as low as $10.8 billion but might reach as much as $11.2 billion. It blamed consumer PC sales in "mature markets" for the $1 billion plus reduction in expected revenues. Intel will make its third quarter earnings report on 12 October.

Today's statement also says of the risk factors, "Intel is in the process of transitioning to its next generation of products on 32nm, and there could be execution issues ... including product defects and ... lower than anticipated manufacturing yields".

Sandy Bridge is considered its second generation of 32nm scale products, while products in its Core series are first generation. "The Core i5 and i3 are 32nm but the graphics part is at 45nm, Sandy Bridge is all 32nm and we are shipping for customer sampling later this year," Intel told The INQUIRER. µ


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