Intel posts $8.7 billion second quarter revenue
Industry analysts aren't expecting much from AMD's upcoming quarterly financial results announcement, but things are looking a lot better on Intel's side. The chip giant has posted revenue of $8.7 billion and net income of $1.35 billion for the second quarter of 2007. Compared to the second quarter of last year, that's an increase in revenue of 8% and a jump in net income of a whopping 44%. Looking at how the results match up with those from the previous quarter, though, it's clear the heated CPU price war with AMD has hurt Intel's profits somewhat. Gross margin dipped from 50.1% in Q1 2007 to 46.9% in Q2, and net income went down 22% (from $1.5 billion) as a result. That said, revenue as a whole only decreased by 2%.
Looking ahead, Intel expects revenue to rise to somewhere in the $9-9.6 billion range in the third quarter of 2007. Surprisingly, despite rumors of additional price cuts, the company also believes its gross margin will go up to 52%, give or take a couple percentage points.