Intel expects third-quarter revenue to be below the company's previous outlook as a result of weaker-than-expected demand. The company expects Q3 revenue of USD 13.2 billion, plus or minus USD 300 million, compared to the previous expectation of USD 13.8-14.8 billion. The company is seeing customers reducing inventory in the supply chain versus the normal growth in third-quarter inventory, softness in the enterprise PC market segment and slowing market demand. The data centre business is meeting expectations. The company's expectation for the Q3 gross margin is 62 percent, plus or minus one percentage point, lower than the previous outlook of 63 percent, plus or minus a couple of percentage points. Expectations for R&D and MG&A spending and depreciation in the third quarter remain unchanged. Full-year capital spending is expected to be below the low end of the company's previous outlook of USD 12.1-12.9 billion, as the company accelerates the re-use of existing equipment to the 14nm node.
