Over the past few days, we've gotten a cartload of news from
Intel on the processor front. The company introduced a new stepping
of Core 2 Duo desktop processors with a 1333MHz FSB. Also on tap were
leaked details of Intel's 45nm Penryn-based Xeon and Core
2 Duo mobile processors.
Today, the information coming out of Intel is of a financial
nature. The Santa Clara-based chip giant reported Q2 revenue of $8.7 billion
USD. Operating income came in at $1.35 billion USD while net income was $1.3
These figures represented an 8 percent, 26 percent and 44
percent increase respectively over Intel's Q2 2006 performance. However, the
results were also 2 percent, 19 percent and 22 percent respectively lower than
The quarter-to-quarter performance was hampered by a lower than
expected gross margin, lower average selling prices (ASPs) for microprocessors,
lower than expected demand for NOR flash products and slower sales of
"Intel's operational execution continued to strengthen,
resulting in an outstanding product roadmap and solid year-over-year revenue
growth," said Intel President and CEO Paul Otellini. "We're pleased
that our efforts to streamline the company are delivering profit growth in
excess of revenue growth."
Intel is projecting revenue of between $9.0 billion USD to
$9.6 billion USD for Q3 2007. The company also expects a gross margin of 52
percent and will spend roughly $2.75 billion USD on research and development.
quote: as long as AMD is around, Intel's historically high gross margins aren't going to be seen again any time soon. That ship has sailed.
quote: Intel did prop up their profit a bit through some basic belt-tightening (layoffs, restructuring).
quote: Strange statement considering both companies have been around nearly the same amount of time. Where was AMD while the ship was loading?
quote: Intel indicated that they expected the price war to taper off during this year...that appears to not be the case.
quote: For Intel's predictions to come true, AMD will have to have another delay or not be able to ship in any volume on the K10.
quote: Of course there was QOQ decline, the CPU market is cyclical.Your boss is wary of increased sustainable efficientcies?You and your boss must both work in the mail room.