Intel Cuts 3rd Quarter Revenue Outlook

SANTA CLARA (CBS/AP) -- Intel is cutting its third-quarter revenue forecast due to softer-than-expected demand amid difficult economic conditions.

Its shares fell more than three percent to $24.27 in Friday morning trading.

The world's biggest chipmaker said Friday that it now expects revenue of about $13.2 billion, but says that figure could be up or down $300 million. Its prior guidance was for revenue between $13.8 billion and $14.8 million.

Analysts surveyed by FactSet predict revenue of $14.21 billion.

Intel Corp. says emerging market demand is slowing and that there is weakness in its enterprise PC unit.

The Santa Clara company also lowered its gross margin forecast to 62 percent, give or take 1 percentage point. Its previous forecast was for gross margin of 63 percent, give or take 2 percentage points.

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