Intel revenues surpass US$14bn for the first time

19 Oct 2011

Intel CEO and president Paul Otellini

Intel has reported a Q3 net profit of US$3.7bn on revenues of US$14.2bn – up 28pc year over year. CEO Paul Otellini said the growth of mobile and cloud computing drove the record results.

Looking ahead to the fourth quarter, Intel predicts revenues of US$14.7bn, plus or minus US$500m.

“Intel delivered record-setting results again in Q3, surpassing $14bn in revenue for the first time, driven largely by double-digit unit growth in notebook PCs,” said Otellini.

“We also saw continued strength in the Data Centre fuelled by the ongoing growth of mobile and cloud computing,” Otellini added.

Intel’s operating income was US$5.1bn, net income was $3.7bn and EPS was 69 cents.

The company generated about US$6.3bn in cash from operations, paid cash dividends of US$1.1bn, and used US$4.0bn to repurchase 186m shares of common stock.

Intel’s board of directors also voted to increase the company’s buyback authorisation by US$10.0bn, raising the total unused balance to US$14.2bn at the end of the third quarter. The company also completed a senior notes offering of US$5.0bn primarily for the purpose of repurchasing stock.

Intel’s PC Client Group revenue of US$9.4bn was up 22pc year-over-year.

Its Data Centre Group revenue of US$2.5bn was up 15 percent year-over-year.

However, Intel Atom microprocessor and chipset revenue of US$269m was down 32pc year over year.

McAfee Inc. and Intel Mobile Communications contributed revenue of US$1.1bn.

R&D plus MG&A spending was US$4.2bn, slightly below the company’s expectation.

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