Intel profits slump but future looks brighter, CEO says

Despite drop, figures were better than expected for the chip vendor

Intel on Tuesday reported a sharp drop in revenue and profit for the first quarter, but the company's CEO said the PC industry is showing signs of recovery.

"We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns," Paul Otellini, Intel's president and CEO, said in a statement.

The company did not provide guidance for future quarters, however, citing continued economic uncertainty.

Revenue for the quarter, ended March 28, was US$7.1 billion, down 26 per cent from the first quarter of 2008 but still slightly ahead of analyst estimates, according to Thomson Reuters.

Net income was US$647 million, down 55 per cent year-over-year, with earnings per share of $0.11. That too was ahead of expectations; analysts had predicted earnings of just $0.03 per share. Intel said some restructuring and asset impairment charges had been lower than expected.

After riding a surge in popularity of netbooks, Intel saw revenue from its Atom microprocessors and chipsets drop sequentially. Atom sales fell 27 per cent during the quarter to $219 million, Intel said.

Intel has adapted well to the recession, according to Otellini, through "disciplined execution and agility." It launched new Nehalem server chips during the quarter, as well as new Atom chips, and revised its manufacturing road map with a faster shift to 32-nanometer production.

Join the PC World newsletter!

Error: Please check your email address.

Tags intelAtom

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service/San Francisco Bureau
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

GGG Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?