Despite a leaked Intel memo that warned of a potentially unprofitable quarter, Intel has actually posted sequential net income growth for the first quarter of this year. The chipmaker says it raked in profits of $647 million on revenue of $7.1 billion, compared to $234 million net income and $8.2 billion revenue for the fourth quarter of last year.
As you'd expect considering the economic climate, however, Intel didn't do anywhere quite as well from a year-over-year perspective. The firm saw $9.7 billion revenue and $1.4 billion net income in the first quarter of 2008, so it's seen revenue go down 26% and profits fall 55%.
Nevertheless, Intel CEO Paul Otellini comments in the results announcement, "Intel has adapted well to the current economic environment and we're benefiting from disciplined execution and agility." Encouragingly, he also notes, "We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns."
Other noteworthy tidbits from the results announcement: Intel's gross margin has fallen from 53.8% in Q1 '08 and 53% in Q4 '08 to 46% in Q1 '09, a decrease the company blames on "higher factory underutilization charges and startup costs." Also, Atom processor and chipset revenue added up to $219 million, down from $300 million in the previous quarter.