- Saturday, 21 November 2009
- INQ Mobile
- RSS
Oliver Cromwell was hanged and decapitated two years after he had died
Intel spins its Q3 results
INTEL REPORTED lower year-on-year third quarter financial results Tuesday, but called its numbers "strong" and claimed the economy is showing "momentum".
Chipzilla booked Q3 revenue of $9.39 billion, down 7.94 per cent from the same period last year but up $1.4 billion from last quarter. Its income was $1.9 billion or 33 cents per share, off 5.47 per cent from the $2.1 billion it reported in the third quarter last year. The company took charges of $63 million in the quarter.
The company said that its sequential quarterly revenue increase of $1.4 billion was its best performance in 30 years, spinning recovery from Q2's dismal revenue.
The results reflect that Intel's server chip business has remained relatively stable, but its client PC chip sales are still suffering after having fallen off a cliff in Q4 last year.
CEO Paul Otellini said, "It's in the client side that the lights have been out for some time now."
He indicated that Intel's near term prospects in client PCs will depend heavily on whether corporate PC replacement purchases recover to former levels next year.
"It comes down to CFOs and CIOs setting budgets for capital expenditure in 2010. There is compelling evidence for refresh is out there. People are going to want to move to Windows 7," he said hopefully.
Intel's sales of Atom chips have remained strong, but those are inexpensive, low margin chips that mostly go into low cost netbooks and low end all-in-one consumer desktop PCs.
In the mass consumer PC market, Intel needs to start selling more SUVs and sports cars instead of the commuter econoboxes that the personal computer buying public has seemed mostly interested in acquiring lately - along with smartphones where Intel doesn't play, but is starting to make a lot of noise.
Intel is running the risk that ARM, VIA or even Nvidia processor based netbooks and ultrathin notebooks might become popular at the low end, while AMD might undercut its prices in the midrange notebook and desktop market segments.
Chipzilla will need to see sales of higher margin desktop and notebook chips pick up again to see renewal of year over year revenue and earnings growth.
Rollout of its Core i5 and i7 chips built on a 32nm fab process could contribute to such a recovery in the next few months, but corporations will have to start buying replacement PCs again in order to drive growth, as consumer PC purchases do not seem to be recovering and aren't the majority of the PC market anyway.
Intel projected that its Q4 revenues will be about $10.1 billion, "plus or minus $400 million." That's in line with analysts' projected estimates for revenue of $9.5 billion. µ
L'Inq
Computerworld
Share this:
ShareBusiness Intelligence Software
Customer Relationship Management (CRM)
Enterprise Accounting Software
Enterprise Resource Planning (ERP)
Enterprise Systems Management
If Intel still lower in its revenue this quarter, what happen with AMD. They will be lower than expected and losing more money again.
You can stop the presses when AMD posts a billion dollar profit. And when they take back the performance crown.
I was surprised the article didn't report the margins. Gross profit margin rose from 50.8% to 57.6%. Guidance for next quarter was 62%. I don't remember ever seeing margins in the 60's.
They're running more efficient and getting more out of each chip. They must also be getting pretty decent margins on Atoms, as Otellini has said before.
Sorry, but:
(1) An analyst midpoint expectation of 9.5B is hardly inline with Intel's Q4 guidance of 10.1B +/- .4B ! Not only is the midpoint .6B higher, the old avg estimate is not even in the RANGE they gave. This is what you call "beating expectations".
(2) Of course earnings are slightly down YoY from Q3 last year, right before the sh*t hit the fan in the economy. But they aren't down *that* much, which is the point!
(3) Margins were 58%, projected at 62% in Q4! This is terrific, and completely refutes your Atom fud.
(4) Speaking of Atom, non-Atom mobile grew FASTER than Atom in Q3.
(5) "as consumer PC purchases do not seem to be recovering and aren't the majority of the PC market anyway." Epic fail. Consumer purchases are precisely what is driving Intel's recovery, pushing their earnings and margins back up to very healthy levels. Where do you get this crap?
This whole article read like something from AMD's PR dept. Hello, editors?
Off topic posting is easy & fun, call this one powertel.
Radeon HD 5970 confirmed as Hemlock, the second driver string is most likely Radeon HD 5950
Right about time nvidia trapes out fermi, BAM, Comes 59X0 Series. HemLock, ITs' Your Choice....
drashek
Atom is 1/4 the size of a Core 2 chip... why do people just assume this is a low margin chip?
There are ~2000-3000 potential die per wafer and even if yield is 50% (which it is not), you are still talking about a chip that probably has a variable cost of <$10 to produce. (wafer cost ~3500, packaging a couple of bucks per chip)
Unless you have actual info on the margin can you please stop guessing like everyone else?
This whole article was filled with spin, half-truths and was written with an agenda in mind.
It seems like his former editor was killed by a hitman who ordered by Intel.
You really should get your facts straight when you write ridiculous and contradictory things like:
"Intel's sales of Atom chips have remained strong, but those are inexpensive, low margin chips"
It costs INTC 7 dollars to manufacture one ATOM chip. They sell them in mass to suppliers and OEM's for 30 dollars. I don't know what the color of the sun is on your planet, but here in the real world thats a 200% margin.
Therefore, if ATOM, by your own admission is "remaining strong", and they are getting 200% margins, then what the hell are you talking about?
Look, we all know how much you boys love to run your own spin when it comes to INTC, that's fine, everyone should have a hobby. However, leave the quarterly financial analysis to someone who knows what they are talking about.
SPARKS
"Intel projected that its Q4 revenues will be about $10.1 billion, "plus or minus $400 million." That's in line with analysts' projected estimates for revenue of $9.5 billion. "
Analyst call for 9.5 billion, Intel projects 10.1 billion, and you call this inline? Pass the dope man.
"Forecast beats estimates
For the current quarter, Intel said it expects revenue of $10.1 billion, plus or minus $400 million. Analysts had expected the company to report sales of $9.5 billion, according to FactSet Research data.
"
http://www.marketwatch.com/story/intel-sparks-hope-after-topping-estimates-2009-10-14?pagenumber=2
Most people say this is exceeds the estimates.
Do you have a brain?
do people still listen to anything intel says?
they must have an ex-government spindoctor on board
hahahahaha
...scum
Bring Charlie and Sylvie back!!!
Charlie may have an nvidia hate, but at least his articles always included evidence of some kind to back his claims.
These new "reporters" have a difficult time just adding simple numbers. And trying to spin a company's quarterly financials is just plain stupid... everyone can see through your bias. You could have at least offered some "evidence" to support your spin.