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Intel Lowers Guidance

Citing softer-than-expected demand in Europe, Intel Corp. Thursday lowered its second quarter revenue guidance.

The company said it now expects 2Q 2002 revenues of between $6.2 billion and $6.5 billion, down from its April guidance of $6.4 billion to $7 billion. Analysts have been looking for earnings of 15 cents per share on $6.67 billion in revenue.

"Microprocessor units are at the low end of the normal seasonal pattern, with a weaker than expected mix," the semiconductor giant said. "Intel's enterprise, mobile and communications businesses are in line with expectations."

"We are a fair amount lower in Europe than we anticipated," said Andy Bryant, Intel executive vice president and chief financial and enterprise services officer. "It's worse than what you would have seen in past years, but not a lot."

The company said it still expects a seasonally stronger second half for 2002.

Intel said amortization of acquisition-related intangibles and costs is expected to be about $230 million in 2Q, compared to the $115 million its previous guidance suggested. The company said the difference is primarily due to a write-off of acquired intangibles related to Xircom PC cards for wireline networking. It expects the full year amount to be about $530 million, as compared to the $440 million it previously forecast.

All other expectations are unchanged, the company said.