Intel surprise: $13.9 billion in revenue beats expectations

Intel logoIntel surprised Wall Street today by posting fourth-quarter revenue of $13.9 billion, and earnings per share of 64 cents, despite issuing a warning last month about a revenue shortfall.

Analysts had been expecting revenue of $13.7 billion and 61 cents per share.

Intel CEO Paul Otellini said that server and storage growth in the Data Center Group was strong, in an earnings conference call this afternoon.

The company said net income was up modestly to $3.4 billion from $3.2 billion in the same period last year.

For the current quarter, the company sees revenue of around $12.8 billion, matching analysts' consensus.

Intel said December 12 that it expected a fourth-quarter revenue shortfall of roughly $1 billion due to the hard disk drive shortage. Guidance for fourth-quarter revenue was lowered to $13.7 billion, plus or minus $300 million.

Following that announcement, Wall Street analysts dropped their earnings per share forecast to 61 cents a share from 69 cents based on Intel's revised revenue forecast of $13.72 billion.

"As a result of the hard disk drive shortages we saw a reduction of orders for microprocessors as customers reduced inventories across the supply chain. Despite this reduction in inventory levels, it is our belief that the shortage did not impact actual sales of personal computers in the fourth quarter with demand trends playing out as expected," said Chief Financial Officer Stacy Smith in a statement.

For the full year, Intel reported revenue of $54 billion, operating income of $17.5 billion, net income of $12.9 billion, and earnings per share of $2.39--all records.

Otellini also addressed the company's reenergized smartphone chip strategy, based initially on its Medfield Atom chip. "The Lenovo K800 will be available in China in Q2," he said referring to the first phone to use that chip.

"And we have a multi-year, multi-device strategic relationship with Motorola Mobility. The first of these Intel architecture-based devices will go through carrier certification this summer with commercial availability shortly thereafter," he said.

Fourth-quarter earnings highlights:

  • Intel Architecture Group fourth-quarter revenue of $12.9 billion was down 3 percent sequentially and up 16 percent year over year.
  • The PC Client Group had revenue of $9.0 billion, down 4 percent from the third quarter. Year over year, PC Client Group revenue was up 17 percent.
  • The Data Center Group had revenue of $2.7 billion, up 8 percent from the third quarter. Year over year, Data Center Group revenue was up 8 percent.
  • Intel Mobile Communications (IMC), formerly the Infineon wireless division, contributed $508 million to the fourth quarter 2011 revenue.
  • Intel Atom microarchitecture revenue, including microprocessors and associated chipsets, was $167 million, down 38 percent from the third quarter and down 57 percent from the fourth quarter of 2010. Intel Atom microarchitecture revenue is down as a result of lower demand for Netbooks.
Source: CNET

Tags: Intel, report

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Consumer group recommends iPhone 8 over anniversary model
 
LTE connections wherever you go and instant waking should come to regular PCs, too
 
That fiction is slowly becoming a reality
 
The Snapdragon 845 octa-core SoC includes the Snapdragon X20 LTE modem
 
Human moderators can help make YouTube a safer place for everyone
 
Google says Progressive Web Apps are the future of app-like webpages
 
All 2018 models to sport the 'notch'
 
The biggest exchange in South Korea, where the BTC/KRW pair is at $14,700 now
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
     12
3456789
10111213141516
17181920212223
24252627282930
31      




Poll

Do you use microSD card with your phone?
or leave your own version in comments (4)