Intel's revenue hits lowest point since 2003
Intel has unveiled its
second-quarter financial results, and as expected by analysts, things aren't
looking so good. Second-quarter revenue was $8 billion, the lowest the
company has seen since the third quarter of 2003. Net income was the
lowest since Q3 2002, meanwhile, at just $885 million. In contrast,
Intel posted revenue of $9.2 billion and net income of $2 billion during
last year's second quarter, and those numbers climbed to $10.2 billion
and $2.5 billion just two quarters ago.
The low income can be blamed in part on Intel's shrinking gross margins,
which, at 52.1%, were the lowest in over three years. These low margins are
partly a result of Intel's recent price
cuts, according to Capital Markets Analyst Bruce Diesen. Intel
forecasts even lower 49% (± 2%) margins for the third quarter. Despite these forecasts, Intel expects third-quarter revenue to climb back to $8.3 to 8.9 billion.