After posting record revenue for this year's second quarter, Intel warned that its third-quarter results would fall below expectations because of lower-than-expected demand. The company has now posted final Q3 numbers, and they sit within the revised guidelines—but they're not exactly anything to be embarrassed about for the chip giant:
|Q3 2009||Q2 2010||Q3 2010|
|Revenue||$9.4 billion||$10.8 billion||$11.1 billion|
|Net income||$1.9 billion||$2.9 billion||$3.0 billion|
In fact, in today's announcement, Intel gloats about seeing its revenue exceed $11 billion for the first time ever in Q3. CEO Paul Otellini hardly sounds bashful, either, with the press release quoting him as saying, "Intel's third-quarter results set all-time records for revenue and operating income. . . . These results were driven by solid demand from corporate customers, sales of our leadership products and continued growth in emerging markets. Looking forward, we continue to see healthy worldwide demand for computing products of all types."
Intel apparently enjoyed record revenue from mobile and server processors, with revenue rising 3% across its PC client and data-center business groups. Average CPU prices didn't budge, though. Interestingly, the announcement reveals that revenue from Atom processors has shrunk 4% since the previous quarter. Could that be a sign of lowered interest in netbooks, now that consumer ultraportables abound and iPads are selling like hot cakes? Either way, Intel is still raking in plenty of cash from mobile CPU sales.
Looking forward to the ongoing fourth quarter, Intel expects revenue in the $11-11.8 billion range with a gross margin of 65-69%. That sounds like a potentially respectable increase over the $10.6 billion revenue and 65% margin Intel posted in Q4 2009.