The world's largest semiconductor company has narrowed its guidance for revenue in Q2 to the top end of the previously provided range.

Intel today said revenue Q2 would be between $8 billion and $8.2 billion as compared to the previous forecast of $7.6 billion to $8.2 billion.

"Demand for Intel architecture products is consistent with the company's expectations at the beginning of the quarter and significantly higher than in the same period last year," the Santa Clara, Calif.-based company said in a statement. "Communications revenue is trending above the company's previous expectations primarily due to increased demand for the company's flash memory products."

Intel said its gross margin percentage is expected to be between 60 percent and 61 percent compared to the previous expectation of 60 percent, plus or minus a couple points.

In addition, Intel said, it has closed a state income tax audit related to prior year returns and as a result will reduce its income tax expense by about $60 million in Q2, slightly reducing the pervious full year tax rate expectation of about 32 percent.

By: DocMemory
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