- Wednesday, 25 November 2009
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The problem with political jokes is they get elected - Henry Cote
Intel earnings fall by 12 per cent
AGAINST THE previous quarter Intel’s Q1 08 numbers are all minuses, $9.7 billion revenue is down 10%, net income of $1.4 billion is minus 36 per cent.
Compared with Q107 the same revenue is up 9% but income still down 11 per cent
Q1 gross margin was 53.8 per cent in line with expectations said the company. Nand flash is taking a hit due to price erosion said Intel.
CEO Paul Otellini’s statement read: “Looking forward we remain optimistic about our growth opportunities as we continue to reap the benefits of our 45nm technology leadership.” Are you listening AMD?
While looking forward it said that Q2 08 would bring in between $9 billion and $9.6 billion and it would have a gross margin of 56 per cent plus or minus a couple of per cent
Flash is taking the blame with Intel having shifted its NOR flash assets into Numonyx at a cost of $275 million and saying that it would impact Q2 revenue. µ
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Intel consistently reports the standard fare in their press release, no funny business with 'operating margin' within 4 mill of break even.

If you take time to read the fine print... many companies detail the effects of non-recurring charges that factor into the net. For Q1 2008, Intel took restructuring and impairment charges lowering Q1 08 by 4 cents, while in Q1 07 EPS was aided by tax benefits of 5 cents.

I.e. Q1 2007 was up 5 cents on onetime occurences, and Q1 2008 was down 4 cents on ontime occurences.

Excluding these nominal charges, Intels EPS was actually outstanding compared to Q1 07, and not nearly as negative as some headlines want to make it out to be....

We are seeing some fanboyism in the financial circles (and the Inq) as it would appear.
Fanboyism....You think? 

Intel just posted over $1.4 billion in profit for Q108, and the author of this article spends his time pointing out that their earnings fell relative to Q107 profits. Personally, given the turmoil in the global economy during Q108, $1.4 bil in profits sounds pretty damn good for a company that isnt producing oil, or selling french nuclear "reactor" components to Iran.

Well, all I can say is that I would love to see how this guy will spin when AMD posts it projected losses for Q108 come thursday