Expects revenue of $14.3bn, plus or minus $500m for Q3 2012
Intel has reported 3.6% increase in second quarter revenue in 2012 to $13.5bn from $13.03bn it reported during the corresponding period in 2011.
Intel's operating income was $3.8bn, profit was slightly up at $2.8bn, while the company generated about $4.7bn in cash from operations, paid dividends of $1.1bn and used $1.1bn to repurchase stock.
In the second quarter of 2012, PC Client Group revenue was up by 3% to $8.7bn, Data Center Group revenue was up by 14% to $2.8bn and other Intel architecture group revenue was up by 3% to $1.1bn.
Intel president and CEO Paul Otellini said the second quarter was highlighted by solid execution with continued strength in the data centre and multiple product introductions in Ultrabooks and smartphones.
"As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment.
"With a rich mix of Ultrabook and Intel-based tablet and phone introductions in the second half, combined with the long-term investments we're making in our product and manufacturing areas, we are well positioned for this year and beyond."
For the third-quarter outlook, Intel said it sees revenue of $14.3bn, plus or minus $500m and gross margin of 63% and 64% on a non-gAAP basis.
While the tablet market is still small, the demand for the devices has significantly risen than PCs and Intel has yet to make significant progress in fast-growing tablets or smartphones, the report added.
For the full fiscal year 2012, Intel cuts revenue forecast and said it will go up between 3% and 5% year over year, down from a prior expectation for high single-digit growth due to declining PC sales amid consumers shift toward tablets.
The top chip maker maintained its full year gross margin forecast of 64% and 65% non-GAAP.
In December 2011, Intel announced that it reorganised several of its business units to form a new mobile and communications group that will be responsible for the company's smartphone, tablet and wireless efforts.
Intel unveiled the ultrabook concept at Computex in June 2011. The ultrabook will be a thin less than 0.8 inches thick notebook that utilises Intel processors and also incorporates tablet features like a touch screen and long battery life.
The company's global investment arm Intel Capital announced later a new fund to support startups working on technologies in line with the company's concept for next generation notebooks.
The company said it was setting aside a $300m fund to be spent over the next three to four years in areas related to $999 ultrabooks.
