Cloud and success in smartphones, ultrabooks powers Intel’s US$13.5bn Q2

18 Jul 2012

Intel CEO Paul Otellini

Chip maker Intel last night reported quarterly revenues of US$13.5bn and a net profit of US$2.8bn. The company’s success has been driven by gains in the data centre business, as well as rapidly emerging form factors, including ultrabooks and smartphones.

The US$13.5bn revenues were up from US$12.9bn a year ago and the net profit was up from US$2.7bn.

Intel reported an operating income of US$3.8bn, consistent with the same level of last year.

The company, which employs more than 4,000 people in Ireland, reported a gross margin of around 64pc and said it spent US$4.6bn on R&D, including mergers and acquisitions.

Tablets, ultrabooks and smartphones

“The second quarter was highlighted by solid execution with continued strength in the data centre and multiple product introductions in ultrabooks and smartphones,” said Paul Otellini, Intel president and CEO.

“As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment.

“With a rich mix of ultrabook and Intel-based tablet and phone introductions in the second half, combined with the long-term investments we’re making in our product and manufacturing areas, we are well positioned for this year and beyond,” Otellini said.

In the past year, Intel has revealed plans to embark on a substantial US$500m construction project at its Leixlip campus, creating 200 high-level technology jobs, as well as 850 construction jobs. The new facilities are being equipped to handle the next generation of 14nm chips.

The other two sites that have been chosen to produce the 14nm chips are Intel’s Oregon and Arizona plants.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years