Feeds

Intel coffers rebound from first half beating

Profits down. Hopes up

Top 5 reasons to deploy VMware with Tegile

The theme of Intel's third quarter earnings today is paying no mind to last year and focusing on how much better things are compared to Q2.

Chipzilla is indeed doing much better sequentially. But to finger the issue more precisely, Intel had suffered a particularly awful second quarter this year. (It was also hit with a $1.45bn antitrust fine imposed by the European Commission). Now, conditions seems to be improving, although they still look poor when compared to Q3 of 2008, when Intel posted its highest revenue ever for that quarter and described the economic crisis as "creating stress that may impact our business."

Intel's financial boss Stacy Smith called the three months ended June 27 "exceptional" (but that's his job, isn't it?). He attributes Intel's healing coffers to a return of PC sales, improved factory output and costs, and lower unit costs across all lines of businesses than anticipated.

Intel chief executive Paul Otellini said it was "the right products, at the right time, for a recovering global economy." He later added that he "wouldn't argue" with some third-party forecasts for PC unit growth of 10 per cent or more in 2010.

Net revenue in Q3 was $9.4bn, an 8 per cent drop versus $10.2bn year-over-year. On the other paw, its the largest second-to-third quarter revenue growth in over 30 years for Intel. The 8 per cent drop is also an improvement from the 15 per cent and 26 per cent year-over-year declines in the first and second quarter respectively.

Intel's net income for the quarter was $1.9bn, down versus $2bn year-over-year. Operating income in Q3 was $2.6bn, compared to $3.1bn in the same period last year.

Enterprise microprocessor revenue for the quarter was $3.87bn, down from $4.07bn year-over-year. Laptop and mobile device chip revenue was $2.92bn, down from $3.39bn year-over-year.

Otellini said while sales of Atom microprocessors and chipsets for low-cost netbooks and PCs continue to expand, traditional notebooks continue to lead mobile growth in terms of revenue. Atom revenue was $415m in Q3 2009, compared to $200m in the year-ago quarter.

The chief executive added that the back-to-school selling season "exceeded expectations."

The company's gross margin, a favorite bellwether amongst industry watchers, rose seven per cent to a total of 57.6 per cent. It's above what Wallstreet was expecting but below the 58.9 per cent reported in the same quarter last year.

From a global perspective, Intel experienced a small decline in all regions. China continues to dominate chip demand:

Revenue %
Asia-Pacific $5.32bn 57%
Europe $1.33bn 14%
Americas $1.82bn 19%
Japan $917m 10%

Revenue from Wind River (the embedded OS supplier Intel purchased for $844m in June) was $36m, about what the company said it expected. Costs during the quarter associated with the acquisition was $11m.

For next quarter, the chip giant predicts revenue of $10.1bn, plus or minus $400m. Because Q4 2009 was when things really started getting heinous for Intel, that would compare with $8.2bn net revenue year-over-year.

Intel breaks out the earnings charts right here (PDF). ®

Beginner's guide to SSL certificates

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
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
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
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'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
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.