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: ultrabooks too expensive
7/19/2012 12:35:42 AM
I really don't think that has anything to do with it, though I'm sure it hurt them in income. Stars is still a relatively good performer but they decided to drop it in favor of bulldozer, which is just a bad performer all around except in integer math, and is diving back in history to netburst style long pipelines. Considering the transistor cost and TDP it seemed like they could've pumped out an 8 core phenom that would've outperformed bulldozer substantially.
I'm assuming they put in decent R&D and pushed out a dud, but they weren't willing to admit that they wasted their time and screwed up their roadmap so they stamped it out regardless. It actually reminds me a lot of the p4 days considering intel eventually went back to p3/M designs after dropping netburst.
"The Space Elevator will be built about 50 years after everyone stops laughing" -- Sir Arthur C. Clarke
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
Not All the High-Tech Jobs Are in California
August 4, 2016, 8:29 PM
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
Most Popular Articles
Update: Problem-Free Galaxy Note7s CPSC Approved
September 22, 2016, 5:30 AM
FDA Cleared, Shockwave Lithoplasty for Peripheral Vascular Disease
September 22, 2016, 5:45 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
Are you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Smartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
Latest Blog Posts
Burlington Gun Attack
Sep 27, 2016, 5:00 AM
Who is in Risk of Getting Oral Cancer?
Sep 23, 2016, 6:02 AM
France Bans Plastic Eating Utensils in Restaurants
Sep 18, 2016, 10:49 AM
Progress Against Acute Myeloid Leukemia
Sep 17, 2016, 5:30 AM
Apple Watch Series 2 - Number 1 in the Customer Satisfaction.
Sep 7, 2016, 6:19 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information