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.
"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer
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
Google's Gleaming Glass HQ Gets Mountain View Snub, LinkedIn Gets the Love
May 7, 2015, 6:58 AM
Tech's Tax Day Fortunate Few: Qualcomm, Xerox, GE, et al. Pay Little or No Taxes
April 15, 2015, 11:30 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
Most Popular Articles
Exclusive: Google's "New" Search Icon Was Created in 2008 by Russian Designer
September 2, 2015, 6:45 PM
Kentucky Man Faces up to 10 Years in Prison for Shooting Drone Trespasser
August 13, 2015, 2:58 PM
Windows 10 Hits 75 Million Users; Grows Nearly 4x as Fast as Windows 7
August 28, 2015, 10:22 PM
Microsoft's Flagship Windows10 Lumias Rumored to Pack 25 Minute Charge Times
August 31, 2015, 8:13 PM
"KeyRaider" Hits 225,000+ iPhones, Mobile Malware no Longer Just a Droid Thing
September 1, 2015, 11:50 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
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
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information