Intel sees better margin from STMicro venture

Published: Tuesday, May 22, 2007, 21:13 [IST]
 

NEW YORK, May 22 (Reuters) Intel Corp. expects its gross margin to improve as a result of a new memory venture with STMicroelectronics, but would still be within its previous full-year forecast.

Intel also expects the deal to decrease revenue and cost of sales in the fourth quarter, but it did not give a specific estimate in a regulatory filing with the U.S. Securities and Exchange Commission on Tuesday.

''Assuming this transaction closes late in the third quarter or early in the fourth quarter of 2007, Intel expects that fourth quarter 2007 revenue and cost of sales will decrease and gross margin percent should improve slightly while direct spending decreases slightly, but still within the full year forecast previously provided,'' said Intel's filing.

Intel had forecast in April that its 2007 gross margin would be 51 percent plus or minus a few points, raised from its previous estimate of 50 percent.

REUTERS PBB DB2002


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