Intel shows big profit on back of business demand

Chip giant Intel made a profit of $2.96 billion in its third quarter on revenues of $11.1 billion.

That compares with a profit of $1.86 billion on revenues of $9.4 billion for the same period last year.

Although Intel remains cautious of sales in the consumer market, CEO Paul Otellini said that the third quarter results “were driven by solid demand from corporate customers”.

He believes that there will be healthy demand worldwide for computing products of all types.

Breaking Intel sales down into sectors, its PC group revenue was up by three percent, its data centre group up by the same amount sequentially, while its Atom microprocessor dropped by four percent sequentially.

It turned in a gross margin of 66 percent, spent $3.2 billion on R&D, and turned in $115 million on its equity investment and interest from its cash pile – less than it expected to.