Intel reports best quarter for 42 years
INTEL yesterday reported second-quarter revenue of $10.8bn (£7.1bn), describing it as the firm’s “best quarter” ever in its 42-year history.
Intel, which is the world’s largest chipmaker, said revenue in the three months ended 26 June totalled $10.8bn, compared with $8bn in the year-earlier period and the $10.25bn expected by analysts.
The company posted operating income of $4m, net income of $2.9bn, or 51 cents a share, versus a net loss of $398m, or seven cents a share, in the second quarter of 2009, when Intel’s results included a $1.4bn fine by the European Commission.
“Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company’s 42-year history,” said Intel president and chief executive Paul Otellini.
Analysts had expected earnings of 43 cents per share in the second quarter.
Intel said its gross profit margin in the second quarter was 67 per cent, compared with the 64 per cent expected by analysts.
Looking forward, Intel estimated revenue in the third quarter of $11.6bn, plus or minus $400m, exceeding the $10.92bn expected by analysts.
Intel’s shares closed at $21.01 yesterday ahead of its results.
Shares of Intel, whose chips are used in the majority of the world’s personal computers, have slid alongside those of other chipmakers in recent months, as investors fret about a potential build-up in chip inventories industrywide, as well as concerns abou the European debt crisis.
Intel is the second major US company to report its quarterly results following aluminium giant Alcoa on Monday, which also beat analysts’ expectations.