News Article
Intel posts record third quarter revenue of $10.2 billion
Revenue up 8%, sequentially gross margin 59%; operating margin 30%, operating income of $3.1 billion up 37%, sequentially net income $2 billion, EPS 35 Cents.
Intel Corporation announced record third quarter revenue of $10.2 billion along with operating income of $3.1 billion, net income of $2 billion and earnings per share (EPS) of 35 cents.
For the current quarter, Intel said it expects revenue of between $10.1 billion and $10.9 billion. Analysts expect Intel to report revenue of $10.8 billion, according to FactSet Research.
Intel CEO Paul Otellini noted that the company's outlook "has a wider range," saying the extent of the impact of the financial crisis on Intel's business is "difficult to quantify." In fact, Otellini said that the financial crisis is "creating some signs of stress that may impact our business."
The company also said in a statement that the "current uncertainty in global economic conditions makes it particularly difficult to predict product demand and other related matters."
Intel highlighted the strong sales of its Atom chip, which is designed for netbooks or nettops, low cost traditional computers and for mobile Internet devices, an emerging category of pocket size gadgets.
Sales of Atom microprocessors and chipsets for netbook and nettop segments totalled roughly $200 million, the company said. "The Atom family is off to a very good start," CEO Paul Otellini said in a call with analysts.
But in a sign of the economic uncertainty faced by most tech companies, Intel also said it expects its research and development spending for 2008 to be at roughly $5.9 billion, lower than the previous target of $6 billion.
The company said it expects capital spending to be at $5 billion plus or minus $100 million, compared with the previous expectation of $5.2 billion plus or minus $200 million. Intel also said it expects gross margin of 59% plus or minus a couple of points for the current quarter.
For the current quarter, Intel said it expects revenue of between $10.1 billion and $10.9 billion. Analysts expect Intel to report revenue of $10.8 billion, according to FactSet Research.
Intel CEO Paul Otellini noted that the company's outlook "has a wider range," saying the extent of the impact of the financial crisis on Intel's business is "difficult to quantify." In fact, Otellini said that the financial crisis is "creating some signs of stress that may impact our business."
The company also said in a statement that the "current uncertainty in global economic conditions makes it particularly difficult to predict product demand and other related matters."
Intel highlighted the strong sales of its Atom chip, which is designed for netbooks or nettops, low cost traditional computers and for mobile Internet devices, an emerging category of pocket size gadgets.
Sales of Atom microprocessors and chipsets for netbook and nettop segments totalled roughly $200 million, the company said. "The Atom family is off to a very good start," CEO Paul Otellini said in a call with analysts.
But in a sign of the economic uncertainty faced by most tech companies, Intel also said it expects its research and development spending for 2008 to be at roughly $5.9 billion, lower than the previous target of $6 billion.
The company said it expects capital spending to be at $5 billion plus or minus $100 million, compared with the previous expectation of $5.2 billion plus or minus $200 million. Intel also said it expects gross margin of 59% plus or minus a couple of points for the current quarter.
