Intel reports a US$10.8bn quarter – best in 42-year history

14 Jul 2010

Chip giant Intel last night reported a second quarter revenue figure of US$10.8bn, up 34pc on last year. The performance was driven by strong demand for advanced microprocessors.

The company reported operating income of US$4.0bn, net income of US$2.9bn and EPS of 51 cents.

“Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company’s 42-year history,” said Paul Otellini, Intel president and CEO.

“Our process technology lead plus compelling architectural designs increasingly differentiate Intel-based products in the marketplace. The PC and server segments are healthy and the demand for leading-edge technology will continue to increase for the foreseeable future.”

PC Client Group revenue was up 2pc sequentially, with record mobile microprocessor revenue. Data Centre Group revenue was up 13pc sequentially, with record server microprocessor revenue. Intel Atom microprocessor and chipset revenue of US$413m was up 16pc sequentially.

The average selling price (ASP) for microprocessors was slightly up sequentially. Gross margin was 67pc, three percentage points higher than the midpoint of the company’s expected range of 62 to 66pc.

R&D plus mergers and acquisitions spending was US$3.25bn, higher than the company’s prior expectation of about US$3.1bn.

The net gain from equity investments and interest and other was US$204m, higher than the company’s revised expectation of US$180m.

The effective tax rate was 31pc, slightly below the company’s revised expectation of about 32pc.

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