Intel said today its first-quarter revenue will be flat to down slightly from a year earlier amid weaker-than-expected sales of flash memory chips used in cell phones.
Revenue for the quarter is expected to be flat to down 2.7 per cent from last year, the world's largest maker of microchips said. The company previously said a rise in revenues compared with the year ago was possible.
Intel narrowed its expected revenue range to $6.6 billion to $6.8 billion from a previous forecast of $6.5 billion to $7.0 billion. A year earlier, Intel posted first-quarter revenue of $6.8 billion.
"Our outlook points to a seasonal quarter with overall financial results in line with previous expectations," chief financial officer Mr Andy Bryant told analysts.
The full-year outlook remains unchanged, he said, adding that he has not seen any signs that corporate spending on information technology has returned.
Shares of Intel fell about 4 per cent to $15.96 in after-hours trade from a close of $16.70 on the Nasdaq stock exchange after Intel published the mid-quarter update.
Intel said first-quarter gross margins should be slightly below the midpoint range of 50 per cent, plus or minus a couple of percentage points, due to higher-than-expected flash inventory reserves.
Flash memory is used for storing information in cell phones and other electronic devices.