Microprocessor giant Intel has staged a remarkable recovery from a precarious financial position last year to a 44pc year-on-year increase in profits on revenues of US$8.7bn in its latest second quarter.
A year ago Intel made the decision to trim off 10,500 workers – or 10pc – of its global worforce to reap cost savings of US$2bn this year.
“Intel’s operational execution continued to strengthen, resulting in an outstanding product roadmap and solid year-over-year revenue growth,” said Intel President and CEO Paul Otellini.
“We’re pleased that our efforts to streamline the company are delivering profit growth in excess of revenue growth,” Otellini added.
The company last night reported second quarter revenues of US$8.7bn, up 8pc on last year. However, revenues were still down 2pc compared with Q 1 of this year.
The microprocessor powerhouse, which employs over 5,000 people in Leixlip, reported second quarter profits ofUS$1.3bn, up 44pc on last year but down 22pc on the first quarter of this year.
The company said that second quarter margins were 46.9pc lower than expected due to lower average selling prices despite high demand for products.
Looking ahead to the third quarter the company predicts revenues of between US$9.0bn and US$9.6bn and improved margin of 52pc.
By John Kennedy