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Intel breaks records and tosses out red ink

The poor economy put a hurt on many technology firms including industry giants like Microsoft and Intel. As the economy starts to turn around, many enterprises and consumers are starting to spend on technology again.

Intel reported its best ever first quarter results in April with profit of $2.3 billion working out to 43 cents per share. As good as the numbers for Intel were in Q1, Q2 is even better. Intel has unveiled its Q2 2010 earnings and reported the best quarter in the history of the company.

Intel posted revenue of $10.8 billion for Q2 2010, which is a gain of $466 million compared to Q1 2010 and up $2.7 billion compared to Q2 2009 during some of the darkest days of the economy. Operating income for Q2 2010 was $4 billion, a gain of $533 million compared to last quarter and a gain of 100% from Q2 2009.

Earnings per share for Q2 2010 were 51 cents, up 8 cents from last quarter and up 58 cents from Q2 2009. If Intel excludes the big $1.45 billion fine levied against it in Q2 2009, the growth is still impressive with revenue up 34% and earnings per share up 183%.

"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."

Highlights for Q2 2010 according to Intel include Atom CPU and chipset revenue growth of $413 million. The ASP for microprocessors was up slightly as well according to the chipmaker. The gross margin for the quarter was 67%, 3% higher than Intel had predicted. Intel also made predictions for Q3 2010 with revenue of $11.6 billion plus or minus $400 million.

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Remind me how much they paid to AMD?
By BernardP on 7/14/2010 10:07:19 AM , Rating: 2
Ah Yes... 1.25 M$: barely a bump in the road for this profit-making machine. You have to admire Intel while rooting for AMD to keep competing. Lately, Intel's deliberate product releases gives me the impression that they are milking current products while waiting for AMD to narrow the gap in the upper midrange and up.

RE: Remind me how much they paid to AMD?
By BernardP on 7/14/2010 10:08:24 AM , Rating: 2
No way to edit posts... Grrr... I meant 1.25 G$ of course.

RE: Remind me how much they paid to AMD?
By troysavary on 7/14/2010 11:02:30 AM , Rating: 4
G$=gazillion ?

By TSS on 7/15/2010 7:27:22 AM , Rating: 2
Entirely possible if intel is owned behind the scenes by Scrooge Mcduck.

By bupkus on 7/14/2010 11:10:38 AM , Rating: 2
... gives me the impression that they are milking current products...
For probably at least two years I've been waiting excitedly for each new manufacturing node now at 32nm. I'd thought prices would come down and I could join in with the celebration of cool, quiet and efficient computer processing. I would look at the mini-itx form factor and imagine a tiny case screwed into the underside of my desk transparently doing the job of my current ATX case.
Only one flaw... the prices. So for about $150 this last 4th of July a bundled Athlon II X4 and 785G mobo took the place of my old mobo and brought me up to date. I admire Intel technology but like they say... "Champaign on a beer budget".

Insane amount of money
By Spivonious on 7/14/2010 10:05:18 AM , Rating: 2
I would love to have a quarterly profit of $2,300,000,000.

Intel must have a large margin on the i series of CPUs.

RE: Insane amount of money
By Taft12 on 7/14/2010 10:51:37 AM , Rating: 2
The margin on i3/i5/i7 is large, the margin on Xeons is ENORMOUS.

RE: Insane amount of money
By dgingeri on 7/14/2010 11:02:43 AM , Rating: 2
on the physical chips, yes, however, they have to recoup the costs of development. when you figure that in on a chip by chip basis, the margin isn't that high. Sure, the physical costs of making a Core i7 920 might be only $50 or so, but they invested billions to develop that chip over a 4 year period.

RE: Insane amount of money
By Spivonious on 7/14/2010 11:24:50 AM , Rating: 3
If they invested billions, then they've made it back in 3 months. $2.3 billion in profit , not revenue.

RE: Insane amount of money
By Flunk on 7/14/2010 11:54:12 AM , Rating: 2
It's more in the realms of $5/chip but yes. Development is a fortune.

Server share
By phazers on 7/15/2010 7:55:36 AM , Rating: 2
So, it appears Magny Cours hasn't made quite the impact AMD had hoped for, having been available for all of Q2. It will be interesting to see the IDC market segment shares for this past quarter, but just based on Intel's quarterly report, it would seem Xeons are cleaning up.

"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook

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