SANTA CLARA, Calif. -- Intel Corporation expects revenue for the third quarter to be between $9.8 billion and $10 billion, as compared to the previous range of $9.6 billion to $10.2 billion. The company continues to see double-digit year-over-year growth driven primarily by strong demand for notebook PC platforms.

The third-quarter gross margin percentage is now expected to be 60 percent, plus or minus a point, and is expected to be slightly above the midpoint of the range. The previous expectation was 60 percent, plus or minus a couple of points.

Intel's tax rate forecast for the third quarter was approximately 30.5 percent. The third-quarter tax rate is now expected to be impacted by additional taxes of approximately $250 million, plus or minus $25 million, related to a potential repatriation of approximately $6.3 billion of accumulated income earned abroad. The company's tax rate forecast for the fourth quarter is unchanged at approximately 30.5 percent.

This Business Update is a scheduled update to the company's Business Outlook for the quarter, which ends Oct. 1. Intel's third-quarter Business Outlook was originally published in the company's second-quarter 2005 earnings release, available at www.intc.com. The company will discuss this update during a public webcast at 2:30 p.m. PDT today at www.intc.com, with a replay available until Oct. 18.

Intel Corp.