Laptops, servers buoy Intel's results

Bobbing along

By Ashlee Vance in Chicago • Get more from this author

Posted in Financial News, 12th October 2004 23:34 GMT

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Laptop and server processor sales helped Intel deliver a moderately successful third quarter. Th chip giant posted $8.5bn in revenue for the period, which is a 8 per cent rise over the same period last year. The total is also in line with a forecast provided by Intel in September when the company lowered its revenue expectations. Net income in this year's third quarter came in at $1.9bn, which is 15 percent higher than last year's total.

Overall, Intel was hurt by weakness in its key microprocessor business. Desktop processor sales came in below expectations, while motherboard and chipset sales came in higher than expected. This mix of products lowered Intel's gross margins. Intel did, however, see success with its laptop and server products.

The company also enjoyed a large boost in Asia-Pacific sales where it moved past the $4bn mark for the first time. Sales in Europe rose as well, while sales in the Americas declined year-over-year.

The quarter certainly wasn't stellar, and Intel admitted that the past year has not turned out like it once expected. The company has suffered from a series of product delays in the consumer segments, more competition from AMD in the low-end server market and still soft sales of its high-end Itanium processor.

"We had a more robust view of the third quarter and the second half three months ago," admitted Intel's Il Duce, President Paul Otellini.

Intel added that inventory levels at its OEM customers remain high. The company expects fourth quarter revenue to come in between $8.6bn and $9.2bn. ®