Electronics Production | July 14, 2010
Intel best quarter ever
Intel reported second-quarter revenue of $10.8 billion, up 34 percent year-over-year
The company reported operating income of $4.0 billion, net income of $2.9 billion and EPS of 51 cents. "Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company's 42-year history," said Paul Otellini, Intel president and CEO. "Our process technology lead plus compelling architectural designs increasingly differentiate Intel-based products in the marketplace. The PC and server segments are healthy and the demand for leading-edge technology will continue to increase for the foreseeable future. PC Client Group revenue was up 2 percent sequentially, with record mobile microprocessor revenue. Data Center Group revenue was up 13 percent sequentially, with record server microprocessor revenue. Intel Atom microprocessor and chipset revenue of $413 million, up 16 percent sequentially. The average selling price (ASP) for microprocessors was slightly up sequentially. Gross margin was 67 percent, 3 percentage points higher than the midpoint of the company's expected range of 62 to 66 percent. R&D plus MG&A spending was $3.25 billion, higher than the company's prior expectation of approximately $3.1 billion.The net gain from equity investments and interest and other was $204 million, higher than the company's revised expectation of $180 million. The effective tax rate was 31 percent, slightly below the company's revised expectation of approximately 32 percent.