Intel turns in $2 billion net profit

CHIP GIANT Intel said its revenues for its second quarter amounted to a not insignificant $9.2 billion, while its net profit amounted to over $2 billion.

That's a difference that represented 15 per cent growth year on year, quarter on quarter, said Intel's CEO, Paul Otellini.

The firm will start producing 65 nanometre processors during the second half of this year, he said.

Otellini said the growth compared to last year was led by strong demand for notebook products that Intel markets.

Total CPU sales, he said, were at record levels but average selling prices were lower because of an increase in Xbox CPU shipments. More chipsets were sold, less mobos were sold, but flash memory units were at record levels, even given lower average selling prices.

Intel estimates the more buoyant third financial quarter will deliver revenues of between $9.6 billion and a staggering $10.2 billion. Gross margin for the forthcoming financial are likely to be around 60 per cent, closer to the traditional margins the firm turned in.

Intel will spend nearly $3 billion on R&D in its third quarter, because it's already contemplating 45 nanometre fabrication plants, it said. Total R&D for its 2005 will be a staggering $5.2 billion.

The conference call starts soon. µ