Intel said it expects its results to weaken in the third quarter, due to a "more challenging" economic environment. For the full year, the company cut its forecast for sales growth to 3-5 percent, from earlier guidance of high single-digit growth. The gross margin is still forecast at 64 percent. For the second quarter, the company reported revenues of USD 13.5 billion, up 5 percent from the first three months of the year and slightly short of its outlook for USD 13.6 billion. Its gross margin was down 0.7 points over the same period to 63.4 percent. Net profit improved 3 percent to USD 2.8 billion, and EPS rose 2 percent to 54 cents. Intel said it was a "solid" quarter, with continued strength in the data centre market and the launch of new products such as Ultrabooks and smartphones featuring its chips. For the third quarter, Intel forecast revenue of USD 14.3 billion and a gross margin around 63 percent.
