It takes a lot to shake Intel and a lot more to hurt its bottom line. Judging by the company's first-quarter financial results announcement, the nasty chipset bug that took Sandy Bridge CPUs off store shelves for weeks did neither. Intel claims "record" revenue and a 29% hike in net income compared to the same quarter last year.
|Q1 2010||Q4 2010||Q1 2011|
|Revenue||$10.3 billion||$11.5 billion||$12.8 billion|
|Net income||$2.4 billion||$3.4 billion||$3.2 billion|
Now, Intel had a little extra help in Q1 2011. First, the company says its buyouts of both Infineon Wireless Solutions and McAfee produced $496 million in extra revenue. Also, because Intel "realigned its fiscal year with the calendar year," the first quarter had an extra week (14 instead of 13).
Even so, one can't deny Intel did well. The company says its PC client, data center, and "other" Intel architecture groups saw growth of 17%, 32%, and 70%, respectively, while Atom CPU and chipset revenue climbed by 4% compared to last year. Average selling prices of CPUs were up overall, too.
Looking ahead at the ongoing quarter, Intel expects its gross margin to fall in the 61-65% range. The company hasn't divulged its expectations for second-quarter revenue and profits, though.