Intel posts record quarterly earnings better than Q2

Jul 29, 2014

Intel Logo

INTEL HAS POSTED a quarterly record for microprocessor unit sales with better than expected earnings for the second quarter.

The record-breaking figures show second quarter earnings of $2.8bn (£1.6bn) on $13.8bn (£8m) in revenue, and are owing to the firm's surprisingly strong sales in the PC client group, which pulled in $8.7bn in revenue, as well as its data centre and internet of things divisions.

Intel's earnings of $0.55 per share were slightly above the expectations of Wall Street analysts, which had forecast lower earnings per share of $0.52 on revenue of $13.69bn.

Intel said it expects the third quarter to bring in $14.4bn revenue, above Wall Street's expectations of $14bn, news which saw its stock price soar four percent in extended trading on Tuesday.

Intel CEO Brian Krzanich told analysts on a conference call that improved demand from companies replacing old PCs will last at least through the end of 2014.

"Our second quarter results showed the strength of our strategy to extend the reach of Intel technology from the data centre to PCs to the Internet of Things," said Krzanich. "With the ramp of our Baytrail SoC family, we have expanded into new segments such as Chrome-based systems, and we are on track to meet our 40 million unit tablet goal.

"In addition, we hit an important qualification milestone for our upcoming 14nm Broadwell product, and expect the first systems to be on shelves during the holidays."

The boost in the earnings of Intel's PC client group could be attributable to a growing number of businesses upgrading their old PC systems due to the end of life of Windows XP. Last week analyst firm Gartner said that the PC market will be "revived" this year thanks to businesses upgrading their Windows XP machines.

According to the analyst outfit, the PC market - which it counts as desktops, notebooks and "premium ultramobile devices" - will surge by over five percent this year. However, it will still be in negative figures, increasing from minus 9.5 percent in 2013 to minus 2.9 percent in 2014.

Source: the INQUIRER

Copyright © 2017, G.T. Internet Information Co.,Ltd. All Rights Reserved.