Intel announces first-quarter revenue

Following AMD's dramatic first-quarter revenue warning, Intel has published financial results for the first quarter of this year, giving all a glimpse of how it's doing compared to its competitor. Intel says it had revenue of $8.9 billion and operating income of $1.7 billion between January and March. That $8.9 billion figure is 9% lower than Intel's fourth-quarter revenue of $9.7 billion—a seasonally-expected decline, and a much smaller one than AMD's predicted 30.8% revenue drop. What's interesting is Intel's income: the company's operating income was $1.5 billion in the fourth quarter, so that particular figure actually went up 13% despite the drop in revenue.

Indeed, Intel boasts that its gross margin was 50.1% for the first quarter, compared to 49.6% in the fourth quarter of last year. The margin increase is due to lower processor unit costs and the sale of "previously reserved inventory," it adds. Intel also reached its goal of reducing its work force to 92,000 people slightly ahead of schedule.

In the second quarter, Intel expects revenue to further drop to between $8.2-8.8 billion and margin to shrink to 48%, give or take a couple of points. Intel is widely expected to slash Core 2 prices later this month, so such a drop wouldn't be too surprising.

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