Intel shows strong year-over-year performance for Q2

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 billion USD.

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 Q1 2007.

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 motherboards.

"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.

"And boy have we patented it!" -- Steve Jobs, Macworld 2007
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