Feeds

Intel's record Q4 run ends with profit drop

Shame on the Americas

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

Intel rumbled to record revenue in its fourth quarter but saw its profit fall, as it felt the pains of competitive pressure from AMD.

Intel posted a 10 per cent increase in revenue to $9.6bn. This total marks a quarterly record for the chipmaker. Intel, however, reported that its profit fell 2 per cent year-over-year to $2.1bn - a rare drop for the company. Intel's earnings per share of 33 cents during the period beat out the consensus analysts' estimate of 31 cents per share.

For the full year, Intel's revenue hit $34.2bn - a solid 13.5 per cent year-over-year increase and also another record. Income came in at $7.5bn, which was up a stunning 33 percent over last year' s $5.6bn.

"Our investments in manufacturing capacity, innovative new products and global presence have allowed us to post double-digit gains in both revenue and profits two years in a row," said soon to be exiting CEO Craig Barrett.

Intel executives boasted about success across the company's product lines, during a conference call with analysts. The firm's results, however, did disappoint in some areas.

For one, Intel's gross profit margin fell to 56 per cent in the fourth quarter, which compares to 63.6 per cent in the same quarter a year ago. A resurgent AMD and related pricing pressure no doubt contributed to this fall.

Intel also saw a somewhat modest increase in its processor sales. The company churned out $6.8bn in chip sales during the fourth quarter versus $6.5bn last year. Its motherboard and chipset business grew revenue to $1.4bn from $1.2bn, and flash memory sales jumped to $643m from $399m. For the full year, Intel posted 12 per cent processor revenue growth but could muster just 5 per cent growth in the fourth quarter, while its two other main business were well into double-digit growth.

In addition, Intel actually saw its sales to the Americas region fall during the fourth quarter. It pulled in $2.0bn this year compared to $2.4bn last year. This drop was offset by a surge in sales to Asia-Pacific where revenue jumped to $4.4bn from $3.4bn. Sales to Europe held relatively steady at $2.3bn compared to $2.1bn one year ago.

Shares of Intel were up slightly during Tuesday's trading on the after-hours markets.

Intel is looking for first quarter revenue to come in between $8.8bn and $9.4bn. ®

Related stories

Investors gut AMD on memory slip
Toshiba announces Sonoma-based notebook early
AMD unveils Centrino spoiler
Transmeta may power down chip making biz

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.