Intel doubles earnings in Q2

Happy birthday! Free PCs!

Intel saw both revenue and income rise in its second quarter, as processor sales came in better than expected.

It's 35 years to the day since Intel first opened its doors, and the company shows no signs of slowing just yet. Intel pulled in $6.8 billion in revenue for the quarter ended June 28. This marks an eight per cent rise over the $6.32 billion generated in the same period one year ago.

Income came in a whopping 101 per cent higher year-on-year. Intel posted $896 million in net income compared to $446 million in last year's Q2.

The Asia-Pacific region was particularly strong in the quarter, setting an all-time revenue record, Intel said. Faster Pentium 4 chips and the Centrino notebook chips did their part to spur revenue in the period.

Intel is spreading the good fortune around to workers. After putting a PC giveaway program on hold, Intel has decided the time is right to bring the deal back.

"We are fulfilling the promise we made to employees in 2000 to provide home PCs," said an Intel spokeswoman. "We plan to substantially complete the programme in the third quarter but we aren’t providing additional details at this time regarding the size of the program or vendors."

For the third quarter, Intel is predicting revenue to come in between $6.9 billion and $7.5 billion, with a boost coming from improved gross margins.

Intel has also upped its research and development budget for 2003, saying it plans to spend $4.2 billion instead of $4.0 billion.

Intel shares edged slightly higher during Tuesday's trading to a close of $24.10. ®

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