Intel Reports Increased Net Income, Foresees Slow Growth in Third Quarter
July 18, 2012 3:41 AM
comment(s) - last by
net income increased 3 percent to $2.8 billion (54 cents a share) and revenue rose 5 percent to $13.5 billion from $13.03 billion this time last year
Leading chip maker
Intel reported increased revenue and net income in its second-quarter earnings today, but predicts slowed growth in the forthcoming third quarter.
According to Intel's earnings report, the company's net income increased 3 percent to $2.8 billion (54 cents a share) and revenue rose 5 percent to $13.5 billion from $13.03 billion this time last year. This was great news for Wall Street, which previously estimated a net income of 52 cents a share and revenue around the $13.54 to $13.56 billion mark.
The gross margins, on the other hand, fell slightly from 64 percent to 63.4 percent. The hit likely comes from increased revenues.
Looking ahead, Intel predicts a revenue of $14.3 billion (plus or minus $500 million) for Q3 2012. Analysts expected somewhere in the realm of $14.60 billion.
"The second quarter was highlighted by solid execution with continued strength in the data center and multiple
product introductions in Ultrabooks
and smartphones," said Paul Otellini, Intel president and CEO. "As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment. With a rich mix of Ultrabook and Intel-based tablet and phone introductions in the second half, combined with the long-term investments we're making in our product and manufacturing areas, we are well positioned for this year and beyond."
The slow growth expected in Q3 2012 mainly comes from Intel's deep roots in PCs, but its large absence from mobile computing. Intel supplies 80 percent of the world's processors for PCs and depends on markets like computer servers and personal computers, which are seeing decreased demand with the recent explosion of mobile devices like smartphones and tablets.
The release of Ultrabooks, while still not as popular as tablets/smartphones, were supposed to add some pizzazz to the PC market for makers like ASUS and Dell. However, some worry that the high-end features of Ultrabooks make them too expensive for most consumers (and will continue getting more and more costly with options like touchscreen features).
Intel cut its 2012 revenue growth prediction from high single-digits to 3-5 percent.
This article is over a month old, voting and posting comments is disabled
RE: just another good quarter.
7/18/2012 10:15:13 AM
Okay I don't know what your problem is with AMD, but I'm not saying AMD has the "dumbest engineers in the world". Although certainly someone royally screwed up with the
, which was supposed to herald a new age of competition with Intel.
"People Don't Respect Confidentiality in This Industry" -- Sony Computer Entertainment of America President and CEO Jack Tretton
Intel Backs ASML for Next-Generation Chipmaking Technology
July 10, 2012, 9:24 AM
HP Airs $599 AMD Trinity Sleekbook, $999 Intel Ivy Bridge Ultrabook
May 9, 2012, 10:37 AM
LinkNYC Terminals to Blanket New York City With Free WiFi, Free Calls, and Ads
November 17, 2014, 6:50 PM
Microsoft is Open-Sourcing Most of .NET, Adding OS X and Linux Support
November 12, 2014, 8:27 PM
Home Depot Lost 53 Million Emails, Blames Windows, Buys Execs New Macs
November 9, 2014, 5:00 PM
Former NSA Lawyer: If Google, Apple Encrypt User Data, They’ll Wither on the Vine Like Blackberry
November 6, 2014, 12:15 PM
Report: AT&T Eyeing $40B DirecTV Purchase
May 1, 2014, 8:00 AM
WebOS Class Action Settlement Costs HP $57 Million
April 1, 2014, 10:22 AM
Most Popular Articles
Wal-Mart: Miss Thanksgiving, Get Xbox One + Master Chief Collection for $299
November 17, 2014, 9:40 PM
Nokia Lumia 635 LTE Windows Phone is Only $40 at Best Buy on Black Friday
November 18, 2014, 11:59 AM
Uber Exec Threatens to "Spend Millions" to Stalk Female Reporter and Her Family
November 19, 2014, 12:31 PM
Toyota’s Mirai Hydrogen Fuel Cell Vehicle Priced from $57,500 in the U.S.
November 18, 2014, 10:23 AM
Apple Replaces “FREE” Label with “GET” on App Downloads in iTunes App Store
November 19, 2014, 5:38 PM
Latest Blog Posts
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information