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Wednesday 20th April 2005

Intel brings in $9.4bn for the quarter 10:35AM, Wednesday 20th April 2005

Wall Street breathed a sigh of relief as Intel beat expectations with its announcement of revenues of $9.4bn for the quarter. This represents a 17 per cent rise in revenues over the corresponding quarter a year ago. Following poor results by IBM and several other tech stocks in the past few days, the bellwether Intel financials will reassure analysts that the tech sector isn't heading for another recession.

First-quarter net income totalled $2.2bn, up 25 per cent year-on-year from $1.73bn and up one per cent from the previous quarter, which is traditionally the strongest in the company's financial year.

'Led by strong demand for our mobile products, Intel posted double-digit revenue and profit growth versus a year ago,' commented Intel CEO Craig Barrett. 'In the coming quarters we expect to carry on the pace set over past decades

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by ramping our industry-leading 65nm process technology and launching additional dual-core microprocessors for our desktop, notebook and server platforms.'

The results are the first the company has reported under its new structure. The company is now divided into five brands including Mobility, Digital Enterprise and Digital Home. Of those main groups, Mobility was the star performer. In January, the company updated its Centrino mobile processor line which provided a big boost to sales. Interestingly Intel managed to maintain the prices of its processors in a business where prices have tended to drop.

The results put Intel in a strong position as it enters the next quarter. With the recent announcements that it is shipping dual-core versions of its Pentium processors and the new WiMax mobility designs further strong growth looks likely.

Following the announcement, Intel shares were up more than three per cent to $23.45 in after-hours trading.

Matt Whipp

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