SANTA CLARA, USA: Intel Corp. has reported first-quarter revenue of $10.3 billion. The company reported operating income of $3.4 billion, net income of $2.4 billion and EPS of 43 cents.
“The investments we’re making in leading edge technology are delivering the most compelling product line-up in our history,” said Paul Otellini, Intel president and CEO. “These leadership products combined with growing worldwide demand and continued outstanding execution resulted in Intel’s best first quarter ever. Looking forward, we’re optimistic about our business as Intel products are designed into a variety of new and exciting segments.”
Q1 2010 Highlights (all comparisons sequential)
* PC Client Group revenue was flat, with record mobile microprocessor revenue.
* Data Center Group revenue down 8 percent.
* Other Intel Architecture group revenue down 9 percent.
* Intel Atom microprocessor and chipset revenue of $355 million was down 19 percent.
* The average selling price (ASP) for microprocessors was slightly up.
* Excluding shipments of Intel Atom microprocessors, the ASP was approximately flat.
* R&D plus MG&A spending of $3.1 billion was higher than the company’s prior expectation.
* The effective tax rate was 29 percent, in-line with the company’s prior expectation.
The outlook for the second quarter does not include the gain expected from the sale of our investment in Numonyx, nor does it include the effect of any other acquisitions, divestitures or similar transactions that may be completed after April 12.
* Revenue: $10.2 billion, plus or minus $400 million.
* Gross margin percentage: 64 percent, plus or minus a couple percentage points.
* R&D plus MG&A spending: Approximately $3.1 billion.
* Impact of equity investments and interest and other: approximately zero.
* Depreciation: Approximately $1.1 billion.
* Gross margin percentage: 64 percent, plus or minus a couple percentage points. The company’s prior expectation was 61 percent plus or minus 3 percentage points.
* Spending (R&D plus MG&A): $12.4 billion, plus or minus $100 million. The company’s prior expectation was $11.8 billion, plus or minus $100 million.
* R&D spending: Approximately $6.4 billion.
* Tax rate: Approximately 31 percent for the second, third and fourth quarters.
* Depreciation: Approximately $4.4 billion, plus or minus $100 million.
* Capital spending: Expected to be $4.8 billion, plus or minus $100 million.
Status of business outlook
During the quarter, Intel’s corporate representatives may reiterate the Business Outlook during private meetings with investors, investment analysts, the media and others.
From the close of business on May 28 until publication of the company’s second-quarter earnings release, Intel will observe a “Quiet Period” during which the Business Outlook disclosed in the company’s news releases and filings with the SEC should be considered as historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.