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Intel hikes sales forecast due to Windows XP exodus

Stronger demand for business PCs has delivered better-than-expected second-quarter sales for Intel.

Josh Lowensohn/CNET

Intel said Thursday that its second-quarter results will be better than expected courtesy of the enterprise PC upgrade cycle. In other words, the big exodus from Windows XP since Microsoft ended support for the desktop operating system in April is juicing demand for business PCs.

According to Intel, its second-quarter revenue will be about $13.7 billion give or take $300 million. Intel had projected revenue of $13 billion, give or take $500 million when it reported its first-quarter results.

Meanwhile, Intel said its gross margin range would be up 1 point to 64 percent. The company said costs will rise a bit due to the revenue growth.

Wall Street was expecting Intel to report second-quarter sales of $13.02 billion with gross margins of 62.6 percent. Earnings for the quarter were expected to be 47 cents a share.

For 2014, Intel said it expects "some revenue growth," a projection that is better than the previous outlook for flat sales. Intel said: "The change in outlook is driven mostly by strong demand for business PCs."

This story originally appeared as "Intel ups Q2 view due to Windows XP exodus" on ZDNet.