Intel Beats Expectations, Posts $3B USD Profit
October 17, 2012 11:40 AM
comment(s) - last by
Ultrabook sales suffer, but Intel still manages to impress in a stale market
Intel Corp.'s (
) fiscal third quarter
a fair bit of optimism, despite a slowing personal computer market.
The world's largest PC chipmaker earned $3.0B USD on a revenue of $13.46B USD. The analyst consensus
were earnings of $2.8B USD on a revenue of $13.23B USD (43 analysts surveyed). That represents a surprise of 5.6 and 1.8 percent on the earnings and revenue side, respectively.
Intel continues to reward its investors via $1.1B USD in dividends and $1.2B USD in stock repurchases.
The core PC Client Group was down 8 percent on a year-to-year basis in revenue, but that was expected. While reviews of Intel's latest and greatest CPU --
the 22 nm
Core i[3,5,7] branded line
-- have generally been decent, PC sales as a whole have been depressed by a slowing global economy and currency concerns.
Intel's Ultrabooks -- a push that was supposed to drive up margins -- have been
largely a sales flop
, despite Intel's claims that 2012 would be the "
year of the Ultrabook
". Some consumers are certainly going for the slender, lightweight, powerful portables, but price has proved a key disincentive driving down sales.
As analysts predicted,
Ultrabooks' "premium" prices have suppressed sales.
[Image Source: HP]
The chipmaker estimates revenue of $13.5B +/- 0.5B USD. Intel also expects $11.3B USD in capital spending, most of which goes to Intel's industry-leading research and development efforts. Intel is racing to
fend off feisty competitors
like the coalition of chipmakers licensing ARM Holdings, Plc.'s (
) lightweight, power-efficient cores and instruction sets.
Those rivals mostly use third party fabs, which trail Intel in process technology. Thus Intel is in an ideal position, in a way, in that it has slack on the architectural front, assuming its
aggressive die shrinks
can yield superior power savings to the nodes that competitors are producing on.
The Santa Clara, California giant expects to pay an effective tax rate of 27 percent for the year of 2012 -- a total
significantly higher than some
top tech companies (the average for Fortune500 tech companies is around 16 percent [
FT [analyst estimates]
This article is over a month old, voting and posting comments is disabled
RE: California Taxes
10/17/2012 9:02:02 PM
The have been over the last couple of decades. They closed their last California Wafer Fab maybe 5 years ago I think it was one of the last Fabs in Silicon valley.
RE: California Taxes
10/19/2012 6:07:25 AM
That was D2, it was our developmental "matching" fab.
"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton
Sales Estimates Slashed for Ultrabooks for 2012 Due to Poor Adoption
October 2, 2012, 8:57 AM
Want an Intel-Based Windows 8 Tablet? Prepare to Pay up to $300 Extra, Says Lenovo
August 17, 2012, 6:18 PM
Fourteen New Intel Ivy Bridge Chips Announced
May 31, 2012, 11:52 AM
Google: Profit up 60 Percent, War-Chest at $49.3B USD, Stock Split 2-to-1
April 13, 2012, 7:01 PM
CES 2012: Intel -- 2012 is the Year of the Ultrabook
January 9, 2012, 12:05 PM
12/20/2013 Daily Hardware Reviews
December 20, 2013, 9:09 AM
Gigabyte Z87X-UD7 TH Motherboard Gets Thunderbolt 2 Certification
December 16, 2013, 11:01 AM
Report: Google May Design its Own ARM-Based Server Processors
December 13, 2013, 12:25 PM
Qualcomm Unveils First 64-Bit "Snapdragon 410" Mobile Processor
December 10, 2013, 12:20 PM
12/9/2013 Daily Hardware Reviews
December 9, 2013, 5:34 PM
Samsung Unveils "Industry First" 1TB mSATA SSD
December 9, 2013, 10:21 AM
Most Popular Articles
China's Moon Rover Lands Safe and Sound, Starts Snapping Pics
December 16, 2013, 1:22 PM
Top Microsoft Graphics Genius Defects to Google
December 17, 2013, 4:27 PM
Report: Fusion Fail? Softbank Wants to Merge Sprint and T-Mobile
December 15, 2013, 6:12 PM
NSA Debates Granting Snowden Amnesty if He Keeps His Mouth Shut
December 16, 2013, 1:17 PM
Harvard Undergrad Busted by Wi-Fi after Making Bomb Threat to Avoid Finals
December 18, 2013, 10:37 AM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information