backtop


Print

Intel is in for a volatile 2006

Intel saw its profits drop by 38% in the first quarter to $1.35 billion dollars -- that was down from $2.18 billion a year ago. However, the earnings of 23 cents per share just barely eked pasted analysts' expectations of 22 cents per share.

"The first quarter was a little better than I was expecting. The second-quarter (estimate) was worse than I modeled. We're in for a rough quarter with Intel," said ThinkEquity Partners analyst Eric Ross. Things have pretty much been down across the board for Intel. Reuters reports:

The company lowered its full-year revenue forecast to a 3 percent fall from 2005. In January, Intel had forecast 6 percent to 9 percent revenue growth in 2006. Intel also cut its estimate of 2006 gross margin to 53 percent from its January forecast of 57 percent.

Much of the drop can be attributed to AMD's recent gains on the desktop and in the server arena. While Intel shares have dropped 24% in the past year, AMD shares have risen 80% during the same period.

Intel has aggressively cut prices to stay ahead of AMD's surge and its new Core lineup is expected to give them a boost later in the year. Only time will tell if AMD's Socket AM2 processors will have what it takes to keep up with Core products.





"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA







Latest Blog Posts
The Best Android Apps
Saimin Nidarson - May 20, 2017, 6:16 AM






botimage
Copyright 2017 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki