Intel turns in strongest quarter ever

Chip giant Intel has signalled that its business is firmly on the mend again after it turned in strong sales and profit figures for its first financial quarter.

It said revenues for the quarter amounted to $10.3 billion, while net profit was $2.4 billion.

CEO and president of Intel, Paul Otellini, said the investments it had made had led to the “most compelling product line up in our history”.  He said: “We’re optimistic about our business as Intel products are designed into a variety of new and exciting segments.”

Chief Financial Officer Stacy Smith said the results were down to the strength of its product line, strong worldwide demand, and attention to costs.

Compared to the same quarter last year, revenues rose by 44 percent, while its net profit was up 288 percent compared to the same period last year.  Its gross margin was 63.4 percent. Smith said that Europe, Asia Pacific and Japan performed better than expected for this period of year. However, the Americas showed a larger than seasonal revenue decline.

Atom revenues amounted to $355 million, a fall of 19 percent compared to the fourth quarter. Average selling prices of processors were up slightly in the first quarter.

Intel’s PC client group delivered revenues of $7.7 billion, with average selling prices for notebook chips rose. Higher ASPs were offset by seasonal volume declines.  Intel projects that it will deliver revenues of $10.2 billion, plus or minus $400 million.