Intel beats expectations with Q3 profit growth

15 Oct 2003

Processor giant Intel shipped record numbers of microprocessors and chipsets in the third quarter, on its way to boosting profits by almost 150pc and growing revenue by 15pc compared with the same period last year. The results are even better than estimates the company had outlined last month.

Intel’s net income was $1.7bn, up 142pc year-over-year and 85pc on the previous quarter. Third-quarter revenue was US $7.8bn, a 20pc increase year-on-year and a growth of 15pc sequentially.

“Intel delivered excellent results in the quarter led by global strength in our computing-related business, resulting in record unit shipments of microprocessors and chipsets,” said Intel CEO Craig Barrett. “Our resolve to invest aggressively during the downturn is paying off with double-digit revenue growth and a doubling of profit compared to a year ago.” He added that the company was “well positioned to take advantage of improving demand”.

On the product front, Intel set records in three categories; chipsets, motherboards and microprocessors all shipped in greater quantities than ever. In addition, the average selling price of microprocessors was slightly higher. Unit shipments of flash memory and Ethernet-based networking products were also higher than before.

Locally, equipment is being installed and qualified at Fab 24, the latest part of Intel Ireland’s Leixlip site. The company said the project is on track to be in production in the first half of next year. Over the last quarter, 300 Fab 24 employees returned from technology co-development assignments in the US in preparation for the Fab 24 startup. The remaining 200 are due to return to Ireland by the end of the year.

Encouragingly, Intel is bullish about the prospects for the fourth quarter; the company anticipates revenue of between US$8.1bn and US$8.7bn.

By Gordon Smith