Intel Earnings fell

April 16, 2009, 2:32 pm

   Intel company summed up its activities in the first quarter of this year. As expected industry analysts, the financial results were not so joyous for the manufacturer. Remember, due to economic uncertainty, Intel had not even specialists have been to publish forecasts for the first quarter of 2009.
Intel Earnings at $ 7 1 billion Thus the operating profit was $ 670 million, net profit - $ 647 million, earnings per share - 11 cents. Compared with the first quarter of last year, revenue decreased by 26%, operating profit - 68%, net profit - 55%. Compared to the fourth quarter of 2008, revenue decreased by 13%, operating profit - at 56%, while net profit increased by 176%.
There are the following key financial facts:

  • Revenues from sales of Intel Atom processors were $ 219 million, which is 27% less compared to the previous quarter;
  • The average sale price of all microprocessors, other than Intel Atom, remained at approximately the same level;
  • The costs amounted to $ 2, 5 billion, respectively, the projected level;
  • The gross margin decreased from 53, 1% in the fourth quarter 2008 to 45, 6%.
With respect to any forecasts for the second quarter, Intel is once again refrained from publishing even rough indicators, referring to the uncertainty of the economic situation. The Company expects that revenue and margin will change nothing. Estimated cost (RD, marketing, general and administrative expenses) will be in the range of $ 10, 4 to $ 10, 6 billion
The increase in net profit is positive, but many analysts are not optimistic. After all, sales fell and the processors, although Intel believes in the revival of the PC market in the second quarter, experts skeptical about this. Following the submission of financial reports Intel shares fell in price by 4%.


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