Intel reports Q1 revenues of US$9.4bn

20 Apr 2005

Intel, which employs 5,000 people in Leixlip, Co Kildare, has reported a net income of US$2.2bn on first-quarter revenues of US$9.4bn that were up 17pc year over year.

First-quarter net income was US$2.2bn, up 25pc year over year and up 1pc sequentially. Earnings per share were 34 cents, up 31pc from 26 cents in the first quarter of 2004 and up 3pc from 33 cents in the fourth quarter of 2004.

“Led by strong demand for our mobile products, Intel posted double-digit revenue and profit growth versus a year ago,” said Intel CEO Craig Barrett.

Barrett announced the results yesterday, marking the 40th anniversary of Moore’s Law, “which remains the driving force behind our ability to continually innovate and bring exciting new products to our customers around the world.

“In the coming quarters we expect to carry on the pace set over past decades by ramping our industry-leading 65nm process technology and launching additional dual-core microprocessors for our desktop, notebook and server platforms,” Barrett said.

In its forward-looking business outlook, Intel said revenue in the second quarter is expected to be between US$8.6bn and US$9.2bn. The company added that the research and development spending expectation for 2005 is unchanged at approximately US$5.2bn.

The chip giant, which is in the process of constructing a third major chip fabrication facility at its Leixlip operation, said capital spending for 2005 is now expected to be between US$5.4bn and US$5.8bn, higher than the previous expectation of between US$4.9bn and US$5.3bn, driven primarily by stronger than anticipated business and increased confidence in the company’s 65nm process technology ramp.

The company added that gains from equity investments and interest on other investments in the second quarter are expected to be approximately US$70m.

By John Kennedy