Wednesday, July 14th 2010

Intel Reports its Best Quarter Ever

Intel Corporation today reported second-quarter revenue of $10.8 billion, up 34 percent year-over-year. The company reported operating income of $4.0 billion, net income of $2.9 billion and EPS of 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."

Q2 2010 Highlights
  • PC Client Group revenue was up 2 percent sequentially, with record mobile microprocessor revenue.
  • Data Center Group revenue was up 13 percent sequentially, with record server microprocessor revenue.
  • Intel Atom microprocessor and chipset revenue of $413 million, up 16 percent sequentially.
  • The average selling price (ASP) for microprocessors was slightly up sequentially.
  • Gross margin was 67 percent, 3 percentage points higher than the midpoint of the company's expected range of 62 to 66 percent.
  • R&D plus MG&A spending was $3.25 billion, higher than the company's prior expectation of approximately $3.1 billion.
  • The net gain from equity investments and interest and other was $204 million, higher than the company's revised expectation of $180 million.
  • The effective tax rate was 31 percent, slightly below the company's revised expectation of approximately 32 percent.
Business Outlook
The Outlook for the third quarter does not include the effect of any other acquisitions, divestitures or similar transactions that may be completed after July 12.

Q3 2010
  • Revenue: $11.6 billion, plus or minus $400 million.
  • Gross margin: 67 percent, plus or minus a couple percentage points.
  • R&D plus MG&A spending: Approximately $3.2 billion.
  • Impact of equity investments and interest and other: approximately zero.
  • Depreciation: Approximately $1.1 billion.
Full-Year 2010
  • Gross margin: 66 percent, plus or minus a couple percentage points. The company's prior expectation was 64 percent, plus or minus a couple percentage points.
  • Spending (R&D plus MG&A): $12.7 billion, plus or minus $100 million. The company's prior expectation was $12.4 billion, plus or minus $100 million.
  • R&D spending: Approximately $6.6 billion. The company's prior expectation was approximately $6.4 billion.
  • Tax rate: Approximately 32 percent for the third and fourth quarters, higher than the company's prior expectation of 31 percent.
  • Depreciation: Approximately $4.4 billion, plus or minus $100 million.
  • Capital spending: $5.2 billion, plus or minus $200 million. The company's prior expectation was $4.8 billion, plus or minus $100 million.
Status of Business Outlook
During the quarter, Intel's corporate representatives may reiterate the Business Outlook during private meetings with investors, investment analysts, the media and others. From the close of business on Aug. 27 until publication of the company's third-quarter earnings release, Intel will observe a "Quiet Period" during which the Business Outlook disclosed in the company's news releases and filings with the SEC should be considered as historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.

For a consolidated summary statement of operation data, please visit this page.
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18 Comments on Intel Reports its Best Quarter Ever

#1
mdsx1950
btarunr“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..
Cool. Happy to be an Intel customer :)
Posted on Reply
#2
$ReaPeR$
yeah.... :) i wouldnt mind moving to AMD if it suited me better..
Posted on Reply
#3
newtekie1
Semi-Retired Folder
mdsx1950Cool. Happy to be an Intel customer :)
Gotta support 'em both, because without one, the other would be free to jack up prices.:toast:
Posted on Reply
#4
erocker
*
The rich get richer. Wierd stuff considering the global economic climate. But hey, they make a damn nice processor.
Posted on Reply
#5
brandonwh64
Addicted to Bacon and StarCrunches!!!
Yea i have a Intel and AMD so which ever is good ATM i usually try to get.
Posted on Reply
#6
Dbiggs9
Go intel :rockout: @ $22 i would hold it. Maybe buy very little with a small upside.
Posted on Reply
#7
Hybrid_theory
I think they should celebrate with a 75% off corei7 sale :D
Posted on Reply
#8
_JP_
Either that or giving away some Core 2 Quads...:)
Posted on Reply
#9
u2konline
I support intel and amd, even tho i like intel better. Only problem intel is too expensive, even tho their performance never fails :)
Posted on Reply
#10
Hybrid_theory
u2konlineI support intel and amd, even tho i like intel better. Only problem intel is too expensive, even tho their performance never fails :)
ive noticed with the current lineup, it certainly is you get what you pay for. AMD is cheaper cause it doesnt perform as high
Posted on Reply
#11
WarhammerTX
Are profits up or sales just higher due to higher priced cpus this can be a smoke and mirror game real easy
Posted on Reply
#12
$ReaPeR$
WarhammerTXAre profits up or sales just higher due to higher priced cpus this can be a smoke and mirror game real easy
i also would like an answer to this question, and yes i agree that intel is the performance king today but how many people need that extreme power, imo some cpus are just overkill, for most of the users.
Posted on Reply
#13
HillBeast
Dear Intel,

Your profits are the highest ever but if you would like to see more money come your way then please can you stop making such asthmatic integrated graphics controllers. If you would please look at what your competition is providing you will be able to get a better idea on why people put low end GPUs in their computers.

Also you can save yourself a few bucks by NOT USING 45nm FOR THE GPU/IMC ON THE CLARKDALE CHIPS!!!

Regards,

i7 User
Posted on Reply
#14
FordGT90Concept
"I go fast!1!11!1!"
I hope they put some of that money into Larrabee R&D.
Posted on Reply
#15
Melvis
When you go into a shop these days, what do you mainly see? intel's or AMD's?
Posted on Reply
#16
Cold Storm
Battosai
Hey intel. I'll let you finish your "rant". Yeah, that quarter was nice, but Apple will have the best quarter of all TIME.

lol, nah I had to do that..


I hope they bring out Sandy cores now since they had that good of a quarter.. I can't wait to see how well AMD did since they have both the 5k series sells and the new 6-core chips..
Posted on Reply
#17
Thrackan
erockerThe rich get richer. Wierd stuff considering the global economic climate. But hey, they make a damn nice processor.
The rich always get richer. No reason for a crisis to change that.
Posted on Reply
#18
v12dock
Block Caption of Rainey Street
Technology stocks are strong
Posted on Reply
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