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Intel wows the Street with best quarter ever

Jul 13, 2010 — by LinuxDevices Staff — from the LinuxDevices Archive — views

Investors might be jittery about the economy, but Intel doesn't appear to be, reporting glowing results for the second quarter of its 2010 financial year. “Strong demand … helped Intel achieve the best quarter in the company's 42-year history,” said Paul Otellini, the company's president and CEO.

According to Intel, its revenue for the second quarter of 2010 was $10.8 billion, up $466 million compared to the first quarter, and up $2.7 billion compared to Q2 2009. Operating income during the same period was $4.0 billion, up $533 million from the previous quarter and $4.0 billion from Q2 2009, the company added.

Commenting on the second-quarter 2010 financial results, Intel Chief Financial Officer Stacy Smith (right) added that the company's net income was up 17 percent sequentially, at $2.9 billion. Gross margin was 67 percent, three points higher than the midpoint of the company's expected range from 62 to 66 percent, he said.

Smith also noted that at $0.51, the company's earnings per share set a new record. Operating profit as a percent of revenue increased to 37 percent, while revenue per employee was at an all-time high of $134,000, he added.

Stated Smith, “Our overall business was strong in Q2, particularly in the enterprise segment. The strength of the enterprise market segment led to a richer than expected mix in both server and PC clients. The supply chain continues to be healthy with inventory levels … appropriate for the level of demand.”

According to Intel, its $10.8 billion revenue was up five percent sequentially, despite an average seasonal decline of two percent. Further, average microprocessor selling prices — both excluding or including low-priced Atom CPUs — were up slightly, “driven by … sales of our new 32nm mobile microprocessors.”

In fact, the company added, Atom revenue went up 16 percent compared to the first quarter, “on strong sales of our next-generation dual-core Intel Atom processors.”

Other key results were cited as follows:

  • The PC Client Group had revenue of $7.8 billion, up slightly from the first quarter, and up 31 percent year over year
  • The Data Center Group had revenue of $2.1 billion, up 13 percent from the first quarter and 42 percent year over year

Otellini stated, “Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company's 42-year history. 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.”

Further information

Intel has forecast that its revenue for the third quarter will be $11.6 billion, plus or minus $400 million. That exceeded analysts' projections, and the company's shares gained eight percent in after-hours trading, according to reports by The Wall Street Journal and others.

More information on Intel's Q2 2010 financial results may be found on the company's website, here.

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