Intel posts record $9.5-billion second-quarter revenue

We reported yesterday that AMD plans to take a total of $948 million in charges for the past quarter, largely because of underperforming consumer electronics businesses and layoffs. So, how did things go at Intel over the same quarter? Pretty well, if the company’s latest earnings release is any indication.

For the second quarter of 2008, Intel says it had revenue of $9.5 billion, up a very healthy 9% from the same time frame a year before but down 2% compared to Q1 2008. The chipmaker has also posted net income of $1.6 billion, up an impressive 25% compared to Q2 2007 and up 11% from Q1 2008. Intel attributes the positive numbers to record mobile processor and chipset sales, higher-than-expected overall processor sales, and gross margin growth from 53.8% in the first quarter to 55.4% in Q2.

Fresh from another strong quarter, Intel expects revenue to go up to $10-10.6 billion in the third quarter, with gross margin to rise to 58%, give or take two points.

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    • Richie_G
    • 12 years ago
    • Mystic-G
    • 12 years ago

    Can they upgrade to Vista now? XD

    Anyone who’s been reading shortbread the passed few weeks should get that joke.

    • Fighterpilot
    • 12 years ago

    Intel are a lot better buddies with AMD than maybe apparent.
    They appear to be quite happy to let the bulk of the server business go AMDs way and and are co-operating nicely re: Crossfire compatibility with Intel chipsets.
    It’s in Intel’s interest to have AMD be a viable, going concern.
    As for NVidia…I think there would be few tears shed at Intel were they to take some serious pain from ATI,I doubt their trash talking chairman is on their xmas card list this year.

    • indeego
    • 12 years ago

    Intel’s success is as much attributable to AMD’s failures as much as to Intel’s new productsg{<.<}g I also wonder if Intel could be liable for lost AMD profit, so that the more Intel makes, the more it is potentially penalized if AMD wins its antitrust caseg{

      • d2brothe
      • 12 years ago

      How exactly would Intel be liable for AMD’s lost profit? Also, I would argue that their success is attributable to BOTH AMD’s failures *and* successes….without AMD’s successes we’d likely still be running Netburst.

        • greeny
        • 12 years ago

        intel are to blame partially for AMD lost profit cos they make a better product just now, that doesn’t make them liable of course, I’m sure intel will be flogging the core based stuff to us for many years to come then AMD will bring something new and whup intels ass again, and so the wheel keeps turning

    • herothezero
    • 12 years ago

    q[<"Sure they made some mistakes," I'd say, "but look out: historically, it is situations like these where they're their most dangerous." And all I got in response was along the lines of "LOL. Intel is nothing but Netbust and Itanic! AMD rulez! Intel is headed for oblivion!!!one1" <]q Same can be said for people's underestimation of Microsoft /[

      • WaltC
      • 12 years ago

      /[

        • quantumMan
        • 12 years ago

        You must work in a different industry than I do. I don’t use a Mac but I know a lot of people who do, and it’s not for running Windows.

        I root for Apple just like I root for AMD: We need competition to ensure that the dominant companies don’t get complacent and lazy.

    • UberGerbil
    • 12 years ago

    Couple of things that are interesting from the actual release
    – “Total microprocessor units were up sequentially and higher than seasonal”
    – While the company’s gross margins were up slightly, they were still in the lower part of their expected range “as growth in demand for lower-priced notebook PC’s resulted in a lower than expected microprocessor average selling price.” — I take this to refer to the “budget” laptop lines from Dell etc, rather than the nettops which haven’t been on the market long enough or in numbers large enough to significantly impact Intel’s quarter.

    Also, though they mention “mobile and chipset units both set records” there’s no mention of servers, which is one area everyone seemed to think they could start to take back the share AMD had been taking from them. I expect they’ll get asked about this in their CC.

    Fun fact: Intel expects to spend $6B on R&D this year. Not only is that about three times what AMD is spending on R&D, it’s about twice what AMD is currently worth (market cap). Heck, Intel is spending almost as much ($5.7B) just on MG&A (Marketing, General and Admin).

    (Aside: not only is the release an Evil PDF, Intel went to the trouble of securing it so you can’t copy text out of it. What exactly does that accomplish?)

      • ludi
      • 12 years ago

      Could just be some hair-trigger sensitive lawyer or perhaps someone didn’t even notice the option was checkmarked when they were working with the file.

      In any case, this is why it’s good to have a few old versions of freeware PDF distillers handy. They tend to ignore useless garbage of this sort and just reprint the document as an accessible PDF. Kind of like when people are sufficiently hung up on themselves to disable the right-click menu in a browser — I often make a point of using keyboard shortcuts to swipe something, just on principle.

      • WaltC
      • 12 years ago

      /[

        • UberGerbil
        • 12 years ago

        Sure. “That which does not kill me makes me stronger.” Just as long as it doesn’t kill you.

          • WaltC
          • 12 years ago

          Heh…;) How many years now have the pundits been declaring “game over” for AMD? They were doing it often prior to 1999 when AMD released K7–then they shut up for awhile. They did it again prior to AMD’s release of the Opteron and the A64 desktop cpu–then they shut up for awhile. And they’ve been doing it again, this time prior to the release of RV770 and I’ve noticed of late that many of those voices have again gone quiescent. Of course, we still have the doom & gloomers and “the end is nigh” folks moaning their dirges right on the eve of AMD’s 45nm cpu releases this year. I predict they’ll be quiet then for awhile, too…;)

          I could be wrong of course–that’s always a possibility. But I think that AMD’s track record to date is pretty strong in affirming that AMD has no plans to go anywhere, least of all down and out. I mean, after all, every time someone–anyone–has predicted the end for AMD over the last decade–well, he’s just been flat wrong, hasn’t he? AMD has yet to lose its ability to both surprise and please its markets, and the way I see it that’s an absolute requirement for survival in AMD’s product markets.

          The minute AMD becomes just another drab, unsurprising, chip-off-the-old-Intel-block company is the minute that AMD will announce to the world that it is content to live in Intel’s shadow and subsist on the crumbs that fall from Intel’s table–by the grace of Intel, of course.

          When that happens–and only when that happens–will I join “the end is nigh!” chorus wholeheartedly, because I will know that AMD is finished as a company. AFAIK, every single company that ever dared to attempt to compete directly with Intel in some fashion eventually developed the live-in-Intel’s-shadow syndrome and every single one of those companies went extinct as a result. When AMD stops attempting to excel–well, that’s when you’ll know the end is truly nigh for AMD. I surely don’t think we are even close to that point as of yet.

            • AMDisDEC
            • 12 years ago

            LOL, Indeed at different stages in it’s existence, observers have assumed the end of AMD or transformation of AMD.
            In each case AMD surged ahead beating expectations. They prevailed using innovation and niche marketing. Also, it didn’t hurt that in some markets, AMD was guaranteed business as Intel’s 2nd source option.

            Of course, it’s always wise to understand that in each of the cases, the company was being managed and colorfully promoted by the then CEO, Jerry Sanders. This is true up to the point when AMD released the Opteron whose development was initiated under Sanders.
            Since then, and under Hector Ruiz, there is no more colorful CEO press conferences.
            Most of the senior design staff who cranked out and managed Opteron have departed and formed start-ups such as MetaRam, PA Semi, and moved to rival, Intel.
            Hector even managed to drive Dave Orton out which I believe was not to great a decision.

            When QPI becomes pervasive, I believe AMD had better release some really compellingly new technology, else they are reduced back to the K5 days of being only a low cost alternative CPU 2nd, with no seriously differentiating features. This is result in further losses of profit.
            The real challege for AMD is, now AMD must compete as number 2 CPU & GPU vendor with both Intel and NVIDIA simultaneously, and they must do it under a weak manager, Hector Ruiz.
            To stay competitive, AMD has to allocate huge R&D budgets for both groups generally a fraction of either Intel or NVIDIA spend, and once again, there is no history of a major product development under Ruiz (or the current CTO) that has led to the company becoming profitable.
            In fact, the handoff from Sanders to Ruiz is very reminiscent of the Bill Clinton->George Bush, Jr. handoff. Times of plenty to times of none.
            To compete technically, AMD must also do as both Intel and NVIDIA have done and aquired other technology companies with complementary technologies. These acquisitions are badly needed by AMD to expand it’s markets, leveraging existing products.
            If you’ve noticed, Intel has purchased and integrated approx. 10-12 system and software technology companies over the last ten years in major markets that AMD just can’t compete and has absolutely no or very little presence.
            On top of this Intel creates industry specifications like PCIe, USB, and ATCA. I expect Intel to soon do the same with QPI with AMD having no disruptive technology to match Intel’s momentum.
            Sorry I can’t agree with your continued faith in AMD but actually, I sold my AMD stock when they hit $40/share. I’m glad I did. If AMD ever hits 40/share again, it’ll be because Intel was swallowed up in a black hole the day before.

            • Ragnar Dan
            • 12 years ago

            So, just to be clear, you consider double-digit annual monetary base growth and yet another of his budget deficits in excess of $1 trillion to be “times of plenty”, is that right? And you consider “none” to mean more growth in 4 years (starting in deep recession with a multi-trillion-dollar attack on top of it, unlike the 5.6+% growth the Chinese government’s favorite agent inherited) than the previous 8 combined. Interesting definitions you’ve got there. It must be fun living in fantasy… for a while.

            There is but one result of a powerful party filled with such people, however, and it is not pleasant for anyone.

            • Flying Fox
            • 12 years ago

            I don’t seem to recall at any other point in AMD’s history that it is under so much debt and the interest payments per quarter alone is enough to sink the company?

            • AMDisDEC
            • 12 years ago

            True, and even with ATI cranking at full throttle, profit margins on Graphics chips are inadequate to provide the revenue AMD needs.
            Between ATI competing with both NVIDIA and Intel, I see no possible way AMD can improve margins on these products.

        • green
        • 12 years ago

        completely agreed with the intel spending
        but if they didn’t try it, and all players are conservative in what they target, there’s litle to no progression and expectations a lowered
        from all players mistakes, everyone else benefits
        – don’t make ridiculously long thin instruction pipes for highly variable proceses
        – people do have a limit when it comes to power consumption and noise
        – it’s not just clock-rates, its the whole thing improving
        – leaner and more generic is more friendly than highly specialised
        – sacrifices must be made to overcome intertia in the market
        many are bound to be repeated (was it a factor of tech at the time? are costs now lower? has software matued? have processes improved?)
        but if no-one ever branches out and tries something different we’ll never know if what’s we’re doing is the right way to go
        amd is a good example: imc, ht-p, 64-bit

      • just brew it!
      • 12 years ago

      q[<(Aside: not only is the release an Evil PDF, Intel went to the trouble of securing it so you can't copy text out of it. What exactly does that accomplish?)<]q Probably makes the lawyers happy... FWIW GNOME's PDF viewer has no problem copying text out of it... 😀

        • Master Kenobi
        • 12 years ago

        PDF Crackers will fix it in less than a second.

        • UberGerbil
        • 12 years ago

        Yeah, it was no big deal — I’ve got four or five PDF apps on my disk and one of them had no problem with it. I was just surprised that Intel would even bother doing that, let alone on a /[

    • Scrotos
    • 12 years ago

    Wow. Just… wow. What a turnaround of the Intel from the P4 days.

      • tfp
      • 12 years ago

      Yep vs back in those days when they were just making over 1 Billion a quarter.

      • UberGerbil
      • 12 years ago

      Yeah, I remember arguing with people back then (people who apparently couldn’t grasp the size of Intel or its resources, or the fact that despite its problems it was still consistently profitable).
      “Sure they made some mistakes,” I’d say, “but look out: historically, it is situations like these where they’re their most dangerous.”
      And all I got in response was along the lines of “LOL. Intel is nothing but Netbust and Itanic! AMD rulez! Intel is headed for oblivion!!!one1”

        • greeny
        • 12 years ago

        Kinda reminds me of the way people shout down AMD these days, they have tough times sure but they’ll come out the other end strong as ever. I might even buy one of their cpus then lol

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