Intel experienced a record quarter for revenue at the start of 2011, according to its latest financial results.
Analysts expected $11.6bn in revenue and an expected share price of 46 cents, however, the results proved to be much higher, hitting US$12.8bn and helping Intel reach a record quarter at the start of 2011.
“The first-quarter revenue was an all-time record for Intel, fuelled by double-digit annual revenue growth in every major product segment and across all geographies,” said Paul Otellini, Intel president and CEO.
“These outstanding results, combined with our guidance for the second quarter, position us to achieve greater than 20pc annual revenue growth.”
Intel’s CFO commentary stated that the company continued to benefit from demand in the enterprise and emerging market segments, despite softness from consumers in the US and Europe. Its server business also exceeded its expectations and there was strong demand for its Sandy Bridge product, in spite of production issues.
Intel provided non-GAAP and GAAP results for more visibility into operational results after acquiring McAfee and Infineon Wireless division.
Intel’s non-GAAP revenue was US$12.9bn, net income was US$3.3bn and operating income was seen to be US$4.2bn.
Its gross margin of 62.3pc was down 2.5 points and its earnings-per-share was 59 cents.
Comparing these figures in terms of GAAP, revenue was US$12.8bn, up from 12pc from the fourth quarter 2010 and up 25pc year-over-year.
Operating income was US$4.2bn, net income was US$3.2bn and earnings-per-share was 56 cents.
It gross margin dollars were US$7.9bn, half a billion higher than the fourth quarter of 2010.
R&D and MG&A as a percentage of revenue was down 28.7pc from the last quarter. This was because spending was US$3.7bn, up 9pc from the fourth quarter and US$100m higher than predicted, driven by acquisitions and salary expenses for the extra week in quarter 1.
Intel pointed out that the first quarter included an extra week of revenue, along with revenue from McAfee and the Infineon wireless division which contributed about US$500m.
Intel’s Business Outlook for quarter 2 for 2011 expects GAAP revenues to hit US$12.8bn, plus or minus US$500m.
It predicts a gross margin percentage if 61pc and R&D and MG&A spending of US$3.9bn.
Its full-year gross margin outlook is 63pc, with R&D and MG&A spending of US$15.7bn.
Its PC Client group generated US$8.6bn in net revenue, which was up from 12pc from the last quarter of 2010, and up 17pc year-over-year.
Intel’s Data Centre Group experienced revenue of US$2.5bn, down 2pc from the fourth quarter. However, year-over-year, revenue was up 32pc.
The other Intel architecture group experienced revenue of US$1.1bn, up from 41pc on the fourth quarter, with a year-over-year increase of 70pc.
The Software and Services Group’s revenue of US$240m was up 220pc from the fourth quarter and its Intel Atom micro-architecture revenue was US$370m, down from 5pc from the fourth quarter.