Feeds

Chipzilla counters Wall Street doomsayers

Holding steady

Top 5 reasons to deploy VMware with Tegile

Updated Intel reassured jittery market watchers by posting better-than-expected first-quarter revenue and forecasting sales for the current period that could exceed analyst expectations. The report, which contrasted sharply with preliminary results posted last week by AMD, sent shares up 8 percent in after-hours trading.

Intel sales were $9.67bn for the quarter ending March 29, a 9.3 per cent increase over revenue of $8.85bn in the comparable period last year. Analysts on average had forecast sales of $9.63bn. Intel forecast sales of $9bn to $9.6bn in the current quarter, compared with an estimate of $9.23bn.

The results are a welcome relief from the steady stream of doom and gloom that has flowed out of Wall Street over the past several months. Last week, AMD laid out plans to cut 10 percent of its workforce after reporting a decline of about 15 per cent in revenue. Some analysts worried the AMD results, combined with predictions of a recession in the US, foretold a coming decline in the entire IT industry.

Intel saw strong sales from European customers in the fourth quarter of last year and reported a 17-percent increase in revenue from customers in the Americas this period.

"I'd look at the integral six months and say that from an economic standpoint, the two most mature of our markets are not showing any signs of weakness," CEO Paul Otellini said on a conference call.

Later when asked if he saw any troubling signs related to demand in either the Americas, Europe or Asia, Otellini said no.

Considering the slump reported by AMD, it's reasonable to infer Intel has grabbed market share from its smaller competitor. Otellini said he'd let analysts come to their own conclusions about that. But he did say the success of its MP Caneland platform fueled record sales for its server products. "I suspect there is some good news in share gain in that number set," he said.

First-quarter net income fell 11.8 percent to $1.44bn, as Intel shelled out $329m in restructuring and asset impairment charges. The profit translated to 25 cents a share, matching analyst expectations.

Intel shares rose 8 percent to $22.61 in after-hours trading following release of the results. ®

Intelligent flash storage arrays

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
What a Mesa: Apple vows to re-use titsup GT sapphire glass plant
Commits to American manufacturing ... of secret tech
prev story

Whitepapers

Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.