Intel reports profit gain, beats expectations

Intel logoIntel's second-quarter earnings exceeded expectations on the back of strong server and data center sales, though the gain in profit was modest.

The chipmaker today reported a second-quarter profit of $2.95 billion, or 54 cents a share, beating last year's profit of $2.89 billion, or 51 cents a share. A gain of only 2 percent.

Data center group revenue was strong and demand for servers was similarly strong, said Chief Executive Paul Otellini. The company is staking a large part of future growth on supplying hardware to power the cloud. Smartphones, tablets, and laptops all access sprawling server farms--a major component of the cloud--that are powered by Intel processors.

Revenue was $13 billion, up 22 percent from $10.8 billion in the year-earlier period. This beat expectations. Financial analysts had forecast revenue to increase to $12.84 billion.

In the current quarter, revenue of $14.1 billion is expected, plus or minus $500 million.

"Strong corporate demand for our most advanced technology, the surge of mobile devices and Internet traffic fueling data center growth and the rapid rise of computing in emerging markets drove record results," Otellini said in a statement.

In the earnings conference call, two themes repeated a number of times by executives were Sandy Bridge and Ultrabooks. Intel's Sandy Bridge chip--used in the MacBook Pro and MacBook Air lines, for example--is the fastest ramping product in the company's history. The Ultrabook, on the other hand, is an emerging laptop category distinguished by thinness and tablet-like features such as instant-on and instant connectivity to the Web.

Ultrabook laptops are expected in the coming months and years. Otellini compared the Ultrabook strategy to its successful Centrino strategy, which put Wi-Fi in virtually every laptop and drove huge sales growth.

Otellini was also asked about Windows 8 and the threat that operating system poses, since the OS will run on competing ARM processors that power most of the world's smartphones and tablets. "We will out-perform and out-compatibility" ARM on Windows 8, Otellini said, referring to the expectation that Windows 8 running on Intel processors should offer better compatibility with older software and devices.

Earnings highlights:

  • PC Client Group revenue up 11 percent year over year.
  • Data Center Group revenue up 15 percent year over year.
  • Intel Atom microprocessor and chipset revenue of $352 million, down 15 percent year over year.
  • Other Intel architecture group revenue up 84 percent year over year.
  • Embedded & Communications Group revenue up 25 percent year over year.
  • Platform average selling price (ASP) was flat sequentially and up year over year.
  • Gross margin was 61 percent, consistent with the company's expectation.
  • McAfee and Infineon Wireless Solutions contributed revenue of $1.0 billion.


Source: CNET

Tags: Intel, report

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

Galaxy Note10 really is built around a 6.7-inch display
You may still be able to download your content
Facebook, Messenger and Instagram are all going away
Minimize apps to a floating, always-on-top bubble
Japan Display has been providing LCDs for the iPhone XR, the only LCD model in Apple’s 2018 line-up
The 2001 operating system has reached its lowest share level
The entire TSMC 5nm design infrastructure is available now from TSMC
The smartphone uses a Snapdragon 660 processor running Android 9 Pie
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 / 2
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /

News Archive



Do you use microSD card with your phone?
or leave your own version in comments (15)