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Intel records Q3 revenue of $10.1 billion USD

Things are looking pretty good in Santa Clara, California these days. Intel today announced that its third quarter revenue reached new records as result of its strong processor portfolio.

The company recorded revenue of $10.1 billion USD -- an increase of 15 percent from Q3 2006. Operating income was also up 64 percent year-over-year to $2.2 billion USD, while net income increased 43 percent to $1.9 billion USD.

"A combination of great products, strong and growing worldwide demand, and operational efficiency from our ongoing restructuring efforts led to record third-quarter revenue and a 64-percent year-over-year gain in operating income," said Paul Otellini, Intel's President and CEO. "Looking forward, we see each of these elements continuing to improve into the fourth quarter. We are very pleased with the results and optimistic about our business."

Intel reports that its microprocessor set new records during the quarter while the average selling price (ASP) remained relatively flat. Intel shipped more than two million quad core processors during Q3.

In addition, chipset and flash memory sales also set new records during the quarter, while motherboard shipments were down.

Intel's third quarter was quite profitable and it expects to record revenue of $10.5 billion USD to $11.1 billion USD during the fourth quarter. The company will have help thanks to its new 45nm-based Penryn desktop/server processors which are due to launch November 12.

Intel will follow-up in the first half of 2008 with new 45nm Menlow platform along with Penryn-based quad core mobile processors during the second half of 2008.

Intel will then crank things up even further with its 45nm Nehalem processors in the summer of 2008.

Intel’s good fortunes during the quarter still weren’t enough to stop job cuts. The company announced in late September that it would cut 10 percent of its IT staff worldwide to “stay agile and stay efficient."

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RE: Is it just me or...
By feelingshorter on 10/16/2007 11:45:27 PM , Rating: 0
Is it just me or do you not realize that Intel is selling more processors than companies like Dell are selling built computers? Its a 14% gap, the largest in history and that can mean: computer builders are over ordering. Meaning sales will slow down sooner or later. Due to the shock of Intel's recent performance gain, i would guess that people got too enthusiastic. Soon, it will drop down to an equilibrium. Even with the market share gained from AMD, the Wall Street Journal predicts Intel might be overselling a little.

So I ask, how can they not layoff people? They have to slim down the company.

RE: Is it just me or...
By JumpingJack on 10/17/2007 12:29:54 AM , Rating: 5
Or it could mean that your figures are coming from Tier 1 OEMs and that the gap is being made up by Intel continuing to take more and more share from the channel ... as AMD continues to shun them in favor of keeping their Tier 1 supply to thei Tier 1 likining's :) ...

I believe they stated inventory was a little leaner than anticipated in the conference call...

RE: Is it just me or...
By Oregonian2 on 10/17/2007 3:07:59 AM , Rating: 2
Processors also are used in things that aren't PC's. They're used in embedded applications as well (particularly ones that want to leverage Intel development tools).

RE: Is it just me or...
By feelingshorter on 10/17/2007 11:27:33 PM , Rating: 2
Again not my statistics and I hardly think a Morgan Stanley analyst (who predicted) would miss that. What the WSJ was iterating is stock owners are weary if growth will continue, since sales of PCs have been flat. So if OEMs over order, then their profits will just decrease later on until all the CPUs previously ordered are sold.

Intel is also reducing spending by about $600 million.

Again, I'd rather believe the analysts (more than 1) that are worried about the outlook since the numbers don't add up. Oems have to sell whats ordered first before ordering more. I hardly think people who have millions invested in Intel have faulty statistics.

RE: Is it just me or...
By afkrotch on 10/18/2007 9:38:16 PM , Rating: 2
Have you looked into homebuilders? Alternative products? There's also been the constant change of processors that has OEMs making more purchases.

Once Penyrn and Phenom release, that's another increase in chip sales. Also OEMs have to purchase different variants, unlike in the past.

Before all you had was single core. Not much selection. Then the addition of dual core. Now you we have quad cores and dropped single cores. Worse for notebooks as it'll have all three in the future.

The more different procs available, the more OEMs have to stock to give users options for their builds. As long as Intel and AMD create different procs, OEMs will be stuck buying new ones, even if they already have a stockpile of older procs in the warehouse.

RE: Is it just me or...
By feelingshorter on 10/17/2007 11:15:22 PM , Rating: 2
The gap is by percentage. Meaning if they are taking up more and more market share, the percentage shouldn't change.

Not to mention what i said was straight from a wall street journal article and i'd rather believe them than people's "maybe" this and maybe that.

"We’re Apple. We don’t wear suits. We don’t even own suits." -- Apple CEO Steve Jobs
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