DailyTech - Intel Quarterly Profit up 43 Percent

Submit News

IT Intel Quarterly Profit up 43 Percent
Brandon Hill (Blog) - October 16, 2007 9:39 PM

22 comment(s) - last by Justin Case.. on Oct 20 at 7:30 PM

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."

Comments

Threshold

Username
Password
remember me

This article is over a month old, voting and posting comments is disabled

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).

Parent

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.

Parent

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.

Parent

"It seems as though my state-funded math degree has failed me. Let the lashings commence." -- DailyTech Editor-in-Chief Kristopher Kubicki