Feeds

Legal charge mars Intel's sparkling Q3

Sales and settlements up

Boost IT visibility and business value

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. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.