Feeds

Legal charge mars Intel's sparkling Q3

Sales and settlements up

Top 5 reasons to deploy VMware with Tegile

Intel cited broad success across all of its major product lines during a healthy third quarter FY2005. Despite record revenue, however, Intel missed earnings expectations by a penny due to a large legal charge.

The chipmaker reported an 18 per cent year-over revenue rise to $9.96bn. Net income also rose 5 per cent to $2bn with earnings per share (EPS) coming in at 32 cents. That EPS total fell below the 33 cent per share figure analysts had been expecting.

Intel took a 2 cents-per-share charge as a result of a settlement with MicroUnity. Intel will resolve the patent infringement dispute by paying MicroUnity $300m.

"In the third quarter, we achieved all-time records in company revenue and unit shipments across all of our major product lines," said Paul Otellini, Intel president and CEO. "Execution remained solid as we launched our new dual-core server platform ahead of schedule and began shipping microprocessors built on our industry-leading 65nm process technology."

But execution really wasn't all that solid as the dual-core chip Otellini mentioned arrived six months after AMD shipped a competing part. In fact, Intel won't have an honest to goodness competitor to AMD's Opteron chip until next year. AMD's server chip technology lead over Intel has helped it woo most of the major hardware makers, including a new deal with Fujitsu.

Despite the competitive pressure, Intel pointed to a number of major gains during the third quarter. Chip sales set a record as did chipset shipments. Flash memory shipments also hit a record and so did shipments of processors designed for mobile devices such as cell phone and PDAs. The only real down spot for Intel was lower motherboard sales and flat overall processor ASPs.

Intel expects fourth quarter revenue to come in between $10.2bn and $10.8bn. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
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 and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.