14 DAY TRIAL // Now that the third quarter has started, IT companies have begun to publish their financial results for the second one, namely the April-June period. Even with the economy in Europe being what it is, most players were proud to show off positive developments. For Intel, however, positive might be an understatement. In fact, the Santa Clara, California-based chip maker actually claims to have scored the best quarterly financial results ever.
Apparently, Intel sold so many chips that its revenues actually topped $10.8 billion. This actually implies an on-year jump of no less than 34 percent. Furthermore, the exact net income amounted to an impressive $2.9 billion. These figures are quite noteworthy, considering that they were reached in only three months. What's more, the R&D (Research and Development) and MG&A (Merger and Acquisition) spendings turned out to be bigger than the $3.1 billion initially predicted. The exact sum was $3.25 billion. All in all, these results drove the chip giant's EPS (Earnings Per Share) to 51 cents.
"Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company's 42-year history," said Paul Otellini, Intel president and CEO. "Our process technology lead plus compelling architectural designs increasingly differentiate Intel-based products in the marketplace. The PC and server segments are healthy and the demand for leading-edge technology will continue to increase for the foreseeable future."
The reason behind this excellent evolution was that mobile and server chips scored a record amount of sales and the highest ever ASP (average selling price). Specifically, Atom processor and chipset revenues rose 16% sequentially, to $413 million. Other business figures include a gross margin of 67 percent and an operating income of $4 billion. As for the business outlook, Intel hopes to score similar gross margin in Q3, as well as revenues of $11.6 billion, give or take $400 million.