Feeds

Intel forecasts Q4 records

Sugars Q3 pill

  • alert
  • submit to reddit

New hybrid storage solutions

Intel saw profits rise 52 per cent for the third quarter, (compared with Q3, 1999) sneaking past Wall Street's reduced expectations.

The Californian chip giant recorded net income before acquisition-related costs of $2.9 billion, on sales of $8.73 billion. This compared to $1.9 billion and $7.33 billion the previous year.

Analysts had been bracing themselves for poorer figures following Intel's warning on September 21 that revenue would be less than expected for the quarter. Its share price took a hammering yesterday, plummeting 11.6 per cent.

Andy Bryant, senior VP and CFO, said in a conference call the figures were "less than we'd hoped for," due to the expected growth from Europe not materialising.

All markets outside Europe saw record sales for the quarter.

The chip master has had a rough ride of it lately - what with delays in shipping the P4 and PIII recalls. To make matters worse, rival AMD today released its new 1.2GHz Athlon and 800MHz Duron.

It said it expected Q4 sales to increase four to eight per cent on Q3, with gross margin for the next quarter anticipated at 63 per cent - down one per cent on Q3. This was due to Intel changing more fabs to making 0.18 micron chips.

"We achieved record revenue with 19 per cent growth in the third quarter. It was a challenging quarter primarily because PC demand in Europe was not as strong as we expected entering the period," said Craig Barrett, Intel president and CEO.

"Looking ahead, we anticipate record revenue in the fourth quarter, with growth across most of our product lines."

"We are especially pleased with the rapid growth in our server business, our record flash business, and our networking silicon business which surpassed our expectations in the third quarter."

Intel's share price rose $1.38 to $37.56 in after hours trading. ®

Related Stories

AMD price war hits Intel stock, MS falls to two-year low
Intel plots P4 Xeon roadmap
AMD beats forecasts with $219m profit
Intel blames Europe for lower profits

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.