Intel sales rise on record microprocessor shipments

Intel revenue rises on record microprocessor shipments.

A spike in the number of microprocessor units shipped has helped Intel record an increase in its third-quarter revenue and income, according to the company.

Intel reported third-quarter revenue of $US10.1 billion, a 15 per cent increase year-over-year, beating Thomson Financial analyst estimates of $US9.617 billion. The company also recorded net income of $US1.9 billion, a 43 per cent increase year-over-year.

The company recorded $US0.31 in earnings per share, matching analyst estimates.

The strong quarter was a sign that Intel's restructuring efforts were succeeding, president and CEO of Intel, Paul Otellini, said in a conference call. The company saw better operational efficiency by cutting costs and reducing the headcount by 12 per cent from last year's total.

This not an end of the strategy, but part of larger recovery strategy, Intel's newly minted chief administrative officer, Andy Bryant,said. The company was in line to record $2 billion in savings and operational efficiency in 2007, Bryant said.

Its headcount currently stood at 88,000 and was expected to fall to 86,000 by the end of the year, he said.

The results were helped by a healthy global demand for microprocessors and chipsets, which strengthened as the quarter progressed, Otellini said. The number of Intel chipsets shipped went up with mobility and vPro, a hardware and software platform to manage business PCs, Otellini said.

"Notebooks as a generic product type is igniting in markets around the world," Otellini said, adding that Santa Rosa and Centrino were getting wide acceptance as mobile platforms.

Intel shipped more than 2 million quad-core processors during the quarter, the company said.

Though the company's Flash Memory Group had a year-over-year increase in net revenue, it recorded an operating loss of $142 million.

A number of big announcements came during the quarter, which ended September 29. At the Intel Developer Forum in September, the company announced it would ramp up performance and energy efficiency in its microprocessors by using a 32-nanometer process technology starting in 2009, with the Nehalem processors.

It also announced the next generation of vPro processor technology, during the quarter. The company also estimated revenue for the fourth quarter at between $US10.5 billion and $US11.1 billion.

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Agam Shah

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