Feeds

Legal charge mars Intel's sparkling Q3

Sales and settlements up

The Essential Guide to IT Transformation

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. ®

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.