July 14, 2010

Intel Posts Biggest Quarter Ever

Intel surpassed Wall Street analysts' expectations on Tuesday as the world's biggest computer chip-maker posted its best quarter ever.

The company reported a second-quarter net profit of $2.9 billion compared to a loss of $398 million during the same quarter a year ago.

A $1.45 billion fine levied by the European authorities for anti-trust violations impacted Intel's results a year ago.

Second-quarter revenue for Intel was up 34 percent compared to a year ago, which is better than analysts' predictions and Intel's own prediction.

"Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company's 42-year history," Intel president and chief executive Paul Otellini said in a statement.

"The PC and server segments are healthy and the demand for leading-edge technology will continue to increase for the foreseeable future," Otellini added.

Intel forecast revenue of $11.2 billion to $12 billion for the current quarter. 

Otellini said in a conference call with analysts that he expected the rise of tablet computers like Apple's iPad to provide opportunities for Intel's Atom processor.

"There's really just one (device) shipping in volume today," he said in a reference to the iPad, which is not powered by Intel chips and has sold more than three million units since hitting store shelves in early April.

"I think this is an additive category of computing, much like netbooks were an additive category," the Intel CEO said. "I don't see tablets cannibalizing the PC market.

"In terms of Intel participating in the tablet market we remain very optimistic about this," Otellini said. "We feel pretty good about our opportunity to participate in the growth as it happens."

He added that Intel had high expectations for a product to be released later this year code named "Sandy Bridge."  He did not provide any further details about the product.


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