Intel beats forecast by one cent

By John G.Spooner, CNET News, 16 July, 2003 10:15

NEWS

Intel on Tuesday reported a second-quarter profit that beat analyst expectations by a penny. The Santa Clara-based chipmaker's net earnings for the quarter, which ended on 28 June, were $896m (£559.21m), or 14 cents per share, on revenue of $6.8bn. That compares with earnings of $446m, or 7 cents per share, on revenue of $6.3bn in the same period a year ago. Analysts had expected Intel to earn a profit of 13 cents a share on revenue of $6.7bn, according to a survey by earnings tracking firm First Call. "Q2 was slightly better than expected and substantially better than a year ago," said Paul Otellini, Intel's president, during a conference call to discuss the company's results. "While the markets for our communications products are still lagging, our Intel Architecture business is performing better than expectations." Observing that Intel's financial results have come in at the high end of its traditional revenue ranges for three quarters in a row, Intel CFO Andy Bryant said the company believes it is getting back to a normal pattern, following several quarters of abnormal contraction and growth during 2001 and 2002. The company's Intel Architecture Business Group, or PC chip business, booked revenue of $5.8bn during the quarter, up slightly from a year ago. Processor shipments and average prices were about the same as in the first quarter, Intel said. The quarterly results included the company's best performance to date in the Asia-Pacific region and the shipment of 1 million Pentium M processors. The Pentium M is Intel's newest mobile processor and the core of its Centrino family of chips for wireless notebooks. Intel also believes that it gained share in chipsets and motherboards, Otellini said. While the Intel Architecture business fared better than expected, the company's communications-products groups continued to suffer during the second quarter. Intel's Communications Group and Wireless Communications and Computing Group, which sell networking and wireless chips, respectively, both saw revenues decline on a year-over-year basis. Flash memory revenues, in one example, declined during the quarter. Intel sees signs of better prospects ahead. Its outlook for the third quarter is for revenue to come in between $6.9bn and $7.5bn, marking a sequential increase, while gross margins should also improve. Typically, revenue for Intel increases from the second to the third quarter. During the past five years, Intel has seen its revenue increase by an average of 7 percent between the second and third quarters, Bryant said. If Intel's 2003 third-quarter revenue hits the midpoint of its forecast, $7.2bn, the company would enjoy a sequential gain of six percent, Bryant said. Intel also expects to see a tax benefit from an unnamed divestiture that it will make this quarter. Signalling that the chipmaker believes times are getting better, the company will resume a programme to give its employees home PCs. Intel put the program on hold during 2001 after doling out PCs to only half of its employees. It will now make good on its promise to the rest of its employees, Bryant said. Despite expecting solid processor sales and seeing some potential for an increase in sales of flash memory, Intel executives are still reluctant to declare that an economic or PC market recovery is afoot. "We're not seeing signs of an economic recovery," Bryant said. "We're not seeing signs of a big upgrade cycle or big increases in IT spending."

See the Finance News Section for the latest financial news in the high-tech sector. Let the editors know what you think in the Mailroom.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

ZDNet UK Live

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

14 minutes ago by Moley on A tale of two distros: Ubuntu and Linux Mint

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

18 minutes ago by greycynic on Ten flawed products that derail productivity

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

2 hours ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

2 hours ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

3 hours ago by bdantas on A tale of two distros: Ubuntu and Linux Mint

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

4 hours ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

4 hours ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material

For Gnome 2 die-hards, it is possible to add icons to the bottom panel (or top top panel, if you prefer) which provide the exact Gnome 2...

5 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint

Your comments would seem pretty naive and immature. Your 'solution' appears to be, "gee, let's all just give in to the hackers and give them...

5 hours ago by ramwellian on Cloud computing security: no more oxymoron?

"Interesting thought ... If you installed Win7 as a dual boot on a machine that previously only had Linux, and it wrecked your Linux installation,...

5 hours ago by BugStalker on Windows 7 Declares War on GRUB

This is an excellent summary of Ubuntu and Mint and the interface differences between them. Most such articles take a very partisan position for...

5 hours ago by whs001 on A tale of two distros: Ubuntu and Linux Mint

@ewallace. Not so clear. Anyone can obtain the text, for example from here http://www.ustr.gov/webfm_send/2379. I support ACTA so long as it and...

5 hours ago by Moley on ACTA: Facts, misconceptions and questions

I think WinRT is fantastic. I just wish it was an option for people that didn't want to go through Microsoft's App Store with its attendant...

9 hours ago by 45283 on Why Windows 8 needs architectural hygiene for WOA

Nine people? £30m? Who's back pocket is that lot going in? And IF they say it is for new buildings, what about all the ones the government has...

10 hours ago by Burn-IT on Police set to launch three £30m e-crime hubs

Just to be clear, nobody knows what is in the text of ACTA, here is a photograph of the text of ACTA http://twitpic.com/8h9iju as submitted to the...

10 hours ago by ewallace on ACTA: Facts, misconceptions and questions

Unfortunately main issue is that ASUS is refusing to accept that they make some mistake on this version of asus Transformer prime. 1 - GPS sensor...

11 hours ago by fgvrg56 on Asus Eee Pad Transformer Prime Wi-Fi & GPS problems?

@Marcus A fair question. Just talked with Archos which said it was working on an announcement for next week....

12 hours ago by Ben Woods on Archos confirms G9 Ice Cream Sandwich update schedule

Any update on this, considering the claimed "first week of February"?

13 hours ago by Marcus Karlsson via Facebook on Archos confirms G9 Ice Cream Sandwich update schedule

Bill Goodrich : Just as al_langevin pointed out, with Windows Server 2008 there is no Services for Macintosh anymore. It's gone, not available....

21 hours ago by apexwm on Windows Server 2008 drops the ball for Mac compatibility

Replying to an old topic that I'm currently facing with my CEO (who is on a Mac). Our servers are primarily Windows Servers, office is about...

1 day ago by txtrainguy on Windows Server 2008 drops the ball for Mac compatibility

Featured white papers

Latest jobs

Intel beats forecast by one cent

Daily Newsletters

Topics

Related stories

Intel takes Deerfield downmarket

Intel turbocharges Xeon chip

AMD looks to ARM itself for low-power tablets

Apple tops list of semiconductor buyers

Post your comment

ZDNet UK Live

Latest in Processors

AMD looks to ARM itself for low-power tablets

Apple tops list of semiconductor buyers

Featured white papers

Latest jobs

Test Analyst - Business Intelligence /Data Warehousing

Test Analyst - Business Intelligence /Data Warehousing

Technical MI Manager - 50-60k - Leeds

Inside ZDNet UK

A tale of two distros: Ubuntu and Linux Mint

2012 Predictions: VCE FastPath, VI SAN Probe & Hadoop

BlackBerry Bold 9790

Case study: How cloud enables growth

Ten factors that make Ubuntu 11.10 a hit

Toshiba Portégé Z830-10P Review

BT's archive: Pictures from the vault

News & Analysis

Reviews

Blogs

Resources

About Us

Member Services

Special Features

Advertising Features

ZDNet UK / News and Analysis / Workspace IT / Processors

Intel beats forecast by one cent

Daily Newsletters

Topics

Related stories

Post your comment

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

Latest in Processors

Featured white papers

Latest jobs

Inside ZDNet UK

Resources

About Us

Member Services

Special Features

Advertising Features