Feeds

Intel makes more money than playing Monopoly

Who can save us now from the Great Satan of Chips?

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Intel caught analysts cold with a superb set of Q4 results, smashing in-house records for revenue, earnings per share, net income, and shipments in all territories -- including the blighted Asia Pacific. Giving the FTC and conspiracy theorists something substantial to chew their teeth on, Intel declared total 1998 sales of $26.3 billion, up 5 per cent on 1997, and net income of $6.1 billion, down 13 per cent on the previous year. All the bad news for Intel took place in the first half of the year. The company hailed a storming Q4 and noted seasonally strong demand for P6 parts in the second half. Q4 revenue of $7.6 billion was up 17 percent from fourth quarter 1997 revenue of $6.5 billion. Fourth quarter revenue was up 13 percent from third quarter 1998 revenue of $6.7 billion. Record fourth quarter net income of $2.1 billion was up 18 percent from fourth quarter 1997 net income of $1.7 billion. Net income in the fourth quarter was up 32 percent from third quarter 1998 net income of $1.6 billion. The Register thought Intel’s X.86 clone rivals were supposed to putting up a serious challenge for the budget market. If so, it certainly isn’t reflected in Intel’s results. The way things are going, 1999 will better for Intel. It enters 1999 with a full roadmap for every market segment, and with its current batch of Celerons, it has low-end chips that OEMs actually want to buy. PC shipments are projected to rise more than 15 per cent this year, according to the Nomura Research Institute -- and we can reasonably assume that Intel will power the lion’s share of these machines. Intel anticipates a gross margin of 57 per cent for 1999, compared with 54 per cent for all of 1998 – suggesting it expects strong sales for high-end, high margin Pentium III and Pentium III Xeon sales during the year. The Great Satan of chips is also turning the screws on its rivals on the technology front. CEO Craig Barrett said the company will soon begin the transition to 0.18 micron manufacture. It is also pumping in $3 billion into R&D, up from $2.7 billion in 1998. The company is putting some brakes on capital spending in 1999, setting aside a budget of only $3 billion. In 1998, capital spending was $4 billion -- although this amount included $475 million of capital assets bought from Digital. The smaller budget for 1999 is "primarily a result of reduced investment for new facilities and improved utilization of manufacturing equipment". ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.