Intel quarterly earnings blow away forecasts

10:44, April 20, 2011      

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Intel Corp. posted strong first quarter earnings on Tuesday, beating analysts' expectations.

On a GAAP basis, the world's largest chipmaker reported first- quarter revenue of 12.8 billion U.S. dollars, an increase of 25 percent compared with the same period last year; net income of 3.2 billion, up by 29 percent and a profit of 56 cents earning per share

On a Non-GAAP basis, Intel reported net income of 3.3 billion U. S. dollars, increasing by 34 percent compared with the first quarter in 2010. Its revenue reached 12.9 billion dollars and reported a profit of 59 cents.

Analysts have given an average estimate of 46 cents in earnings per share and 11.6 billion in revenue.

"The first-quarter revenue was an all-time record for Intel fueled by double digit annual revenue growth in every major product segment and across all geographies," said Paul Otellini, Intel president and CEO. "These outstanding results, combined with our guidance for the second quarter, position us to achieve greater than 20 percent annual revenue growth."

For the fiscal year 2010, Intel earned record revenue amounting to 43.6 billion and reported net income of 11.7 billion, the best figures in the company's history. Analysts have been worrying that the slow global PC shipment could have made Intel miss the forecasts.

In January, Intel announced it had discovered a design flaw in a series of its chips and was working on recalls. The company revised its business outlook for the first quarter, cutting the revenue forecast by 300 million to 11.7 billion.

Last week, data from two U.S. market research firms show that global PC shipments declined during the first quarter of 2011 possibly due to the rising of media tablets. With demand among PC manufacturers remaining weak, Intel has also been marginalized in the booming tablet market as its chips do not meet the power efficiency requirements of tablets and smartphones.

Last Monday, Intel launched a new low-power Atom Z670 processor slated for tablets and smartphones. In January, it completed the acquisition of Infineon Technologies AG Wireless Solutions for 1.4 billion, which now operates as the Intel Mobile Communications group. It also completed the acquisition of anti-virus software company McAfee for 7.68 billion in February.

For the second quarter, Intel forecast revenue of 12.3 billion to 13.3 billion. Analyst gave an average estimate of 11.87 billion.

Source: Xinhua
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