News Article
Intel raises capex following strong first quarter results
Number one chip maker Intel has exceeded analyst’s expectations for its first quarter of 2005, posting net income of US$2.2 billion on revenues of US$9.4 billion. Net income was up 25% year-on-year and 1% sequentially, while revenues grew 17% year-on-year and fell 2% sequentially.
Number one chip maker Intel has exceeded analyst’s expectations for its first quarter of 2005, posting net income of US$2.2 billion on revenues of US$9.4 billion. Net income was up 25% year-on-year and 1% sequentially, while revenues grew 17% year-on-year and fell 2% sequentially.
The company achieved a gross margin of 59.3% - ahead of its own forecasts. The good results were largely thanks to strong sales of mobile and wireless products. The company also said that lower costs, earlier than expected shipment of some products and a good mix of microprocessors helped.
Looking to the second quarter, Intel believes that it will achieve revenues of between US$8.6 billion and US$9.2 billion. Its guidance for second quarter gross margin is 56% plus or minus a couple of points. The company now believes that it will exceed its 2004 gross margin of 58% by around 1%.
In a further sign that the company is in bullish mood, Intel raised its capex budget for 2005 to the range of US$5.4 billion to US$5.8 billion (see Analyst’s corner). It has previously been planning to spend between US$4.9 billion and US$5.3 billion.
The company achieved a gross margin of 59.3% - ahead of its own forecasts. The good results were largely thanks to strong sales of mobile and wireless products. The company also said that lower costs, earlier than expected shipment of some products and a good mix of microprocessors helped.
Looking to the second quarter, Intel believes that it will achieve revenues of between US$8.6 billion and US$9.2 billion. Its guidance for second quarter gross margin is 56% plus or minus a couple of points. The company now believes that it will exceed its 2004 gross margin of 58% by around 1%.
In a further sign that the company is in bullish mood, Intel raised its capex budget for 2005 to the range of US$5.4 billion to US$5.8 billion (see Analyst’s corner). It has previously been planning to spend between US$4.9 billion and US$5.3 billion.
