Intel’s results boost sector
INTEL, the world’s biggest chipmaker, reported better-than-expected second quarter net profits of $1bn (£610m) yesterday, fuelling hopes that the worst is behind the technology sector, as its reporting season opens.
The company said its revenues of $8bn were down 15 per cent year-on-year, but up 12 per cent from the first quarter, and beat analysts expectations of $7.27bn for the period.
“Intel’s second quarter results reflect improving conditions in the PC market segment with our strongest first–to–second quarter growth since 1988 and a clear expectation for a seasonally stronger second half,” chief executive Paul Otellini said.
Intel’s microprocessors are used in more than three-quarters of the world’s personal computers, and its results are a barometer for the global PC sector.
The group has felt the effects of the economic recession and the slowdown in IT spending, but Otellini said earlier this year that PC sales had “bottomed out” in the first quarter and that the industry was returning to seasonal business patterns.
Intel had to pay charges for a European antitrust fine in the second quarter of $1.45bn, but it intends to appeal the ruling.