Intel's Second-Quarter Profit Beats Estimates
Date : 17 Jul 2008 Category : Technology
NewsFactor NetworkInvestors viewed the chipmaker's favorable results as a sign that global PC demand is healthy despite a sputtering U.S. economy that has depressed some domestic spending. Intel CEO Paul Otellini said demand for Intel's chips remains strong "in all segments and all parts of the globe." Three-quarters of Intel's business is outside the U.S.
Intel shares rose 23 cents, or 1.1 percent, to $20.94 in after-hours trading. They had risen 24 cents, or 1.2 percent, to $20.71 in the regular session before the Santa Clara-based company reported its results.
Intel said its net income was $1.6 billion, or 28 cents per share, in the three-month period ending June 28.
That was 3 cents per share higher than what analysts surveyed by Thomson Financial were expecting. It was a 25 percent jump from the $1.28 billion, or 22 cents per share, that Intel earned a year ago.
Intel is profiting from surging global demand for laptops and the processors that power them, though lower prices for some of the fastest-growing models drove down Intel's closely watched average selling price in the latest quarter.
However, Intel can absorb the trend easier than smaller rival Advanced Micro Devices Inc. because Intel has made a faster switch to a new manufacturing process that lowers the cost of making each chip.
Intel is the world's No. 1 supplier of microprocessors, the electronic brains of personal computers. Intel commands about 80 percent of the market, with AMD owning roughly the other 20 percent.
Intel has been taking market share from AMD in recent quarters with a more robust product lineup. Meanwhile, AMD has been hurt by lengthy product delays and the substantial debt it took on to finance its $5.6 billion acquisition...