SANTA CLARA, Calif., April 17, 2007 – Intel Corporation today announced first-quarter revenue of $8.9 billion, a nine per cent drop over the previous quarter.
On the other hand operating income was $1.7 billion, up 13 per cent over the fourth quarter of 2006, while net income of $1.6 billion was up seven per cent. As a result earnings per share (EPS) was 27 cents.
The results included the effect of a $300-million reversal of previously accrued taxes that increased EPS by approximately five cents.
“The strong momentum of our industry-leading Intel Core microarchitecture productfamily, combined with ongoing structural cost improvements, delivered solid financial results in the first quarter,” said Intel President and CEO Paul Otellini. “Our product strength is reflected in the fact that average selling prices for the quarter held up well in a very competitive environment.”
Among the hightlights:
–First-quarter gross margin was 50.1 percent, higher than 49.6 percent in the previous quarter as lower microprocessor unit costs and the sale of previously reserved inventory more than offset the effects of higher 45 nanometer (nm) start-up costs and lower revenue;
–The company reached its goal of reducing the workforce to approximately 92,000 people, meeting the target one quarter ahead of schedule;
–Total microprocessor units sold were lower sequentially. The average selling price (ASP) was slightly lower driven by a lower mix within server processors, with desktop and mobile ASPs approximately flat;
–Chipset, motherboard and flash memory units were lower sequentially.
For the second quarter, revenue is expected to be between $8.2 billion and $8.8 billion.