Intel revenue tops $11 billion for the first time

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
Gross margin 58% 67% 66%

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.

Comments closed
    • Grigory
    • 12 years ago

    Exactly!

    • NeelyCam
    • 12 years ago

    I’d love to be Paul Otellini. Bigger bank account, better hair.

    And yes – it is a fun game.

    • NewfieBullet
    • 12 years ago

    If corporate customers were switching to Windows 7 machines in huge numbers Microsoft would be shouting that from the rooftops. I would guess that the leadership products the customers are buying are Xeon 5600 series. While these are 32nm Intel has to sell a lot fewer of them to make a huge difference in revenue.

    • OneArmedScissor
    • 12 years ago

    So reading between the lines is making a guess, going off on a further tangent based on that guess, and then concluding something totally unrelated to any of those things.

    To quote the late, great Mitch Hedberg, “SEE I DID NOT KNOW THAT!”

    That does look like a fun game, though. Let me try:

    AMD delayed 32nm CPUs to 2011, so Nvidia is planning for a new GPU that year, and therefor, NeelyCam is Bizarro Paul Otellini.

    Well, nevermind. That didn’t involve any reading in between the lines.

    • wira020
    • 12 years ago

    Competition also helps push technology forward.. like Nvidia and AMD.. always fighting to be the performance king..

    • anotherengineer
    • 12 years ago

    “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.”

    Paul forgot to mention the monopoly they have on the cpu market lol

    • NeelyCam
    • 12 years ago

    You need to learn to read between the lines. Most of that “solid corporate customers” business was most likely replacing old crappy WinXP laptops/desktops with newer, faster Arrandale/Win7 ones that support hardware encryption.

    • Grigory
    • 12 years ago

    What? No, not at all. If there is only one company making high performance x86 CPUs there won’t be much deflation (as you put it) at all.

    • djgandy
    • 12 years ago

    You assume the market acts in proportion to news and does not price expectation. You also assume that all possible market participants are involved in price discovery on every single market day.

    Finally you assume that stock prices currently have anything to do with underlying fundamentals of companies. They don’t. All that matters is how much money the fed is going to print and how much of that money they banks will get so they can buy stocks.

    • djgandy
    • 12 years ago

    Bit like deflation means people won’t buy stuff because it’ll be cheaper next month?

    Except for technology is constantly in deflation yet people still buy it?

    • Grigory
    • 12 years ago

    You do realize that without competition we (customers and mankind in general) are royally effed in the lower back, right?

    • ronch
    • 12 years ago

    Get a move on, AMD!

    • NewfieBullet
    • 12 years ago

    There is nothing in the Intel press release that says anything about 32nm yields. They may very well be good but this press release doesn’t state that.

    • TREE
    • 12 years ago

    I think it was sarcasm from the original poster.

    • Buzzard44
    • 12 years ago

    So take me through the chain of events here:

    1: Last quarter – Intel makes all-time record high profits.
    2: I buy stock.
    3: Intel beats last quarter to again make record high profits.
    4: I’ve lost 10% on Intel.

    The market really can be a mysterious and cruel mistress.

    • OneArmedScissor
    • 12 years ago

    Yes, note the part that specifically states this is a direct result of high 32nm yields.

    And also note the endless torrents of 32nm CPUs that so quickly replaced their entire lineup, not how it the increase was, “driven by solid demand from corporate customers, sales of our leadership products and continued growth in emerging markets.”

    In other words, definitely not the sort of things where the business is based on selling smaller amounts of $1,000 CPUs.

    It’s fun to play pretend!

    • NeelyCam
    • 12 years ago

    …And this is for those who argued that Intel’s 32nm yields are crap.

    Looks like they’re not.

    • NeelyCam
    • 12 years ago

    Neither has BD, Ontario, Zacate or Llano.

    • Krogoth
    • 12 years ago

    PC gaming is dying.

    FYI, PCs do more then just gaming. I bet most of those sells weren’t “gaming” systems.

    • Vaughn
    • 12 years ago

    lol Bob

    that would be jokes if possible but highly doubt it.

    • Meadows
    • 12 years ago

    “Now”? When was the last time intel weren’t doing well?

    • BoBzeBuilder
    • 12 years ago

    What if SB hands it to AMD presscott style?

    • tejas84
    • 12 years ago

    So happy to see Intel doing well now that the playing field has been levelled!

    It seems that the “dying” PC market is rather healthy and strong.

    Bulldozer is in for a world of pain from Sandy Bridge! I can’t wait for AMD to get handed their behinds again Phenom I style!

    Here’s to Intel and Nvidia!

    • tviceman
    • 12 years ago

    Wow, they make great products but this just shows how much we need AMD and Nvidia to both be healthy competitive companies.

    • indeego
    • 12 years ago

    Here’s how you can make a difference: Buy from a competi—

    BWAHAHA who am I kiddingg{.}g Let’s enjoy our 98 cores while we can afford them!

    • blubje
    • 12 years ago

    Wow, such big profit margins. We need some competition 🙁

    • sweatshopking
    • 12 years ago

    lol, and sb hasn’t even come out yet.

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