Intel made good money on chips

The CEO of Intel Paul Otellini (Paul Otellini) reported that the company could get profit as a result of powerful deliveries of microprocessors and two-digit growth of deliveries of notebooks. At the same time Intel observes the dynamic development of data centers stimulated by growth of mobile and cloud computing, he noted.

In the reporting third quarter the company got profit in the amount of $3.7 billion (without GAAP) that is 24% higher in comparison with the same period of 2010. The earnings per share in a quarter made $0.69, having exceeded assessment of some analysts of $0.61. According to GAAP, the profit of Intel was $3.5 billion, and earning per share of $0.65, after accounting of taxes and obligations for acquisitions.

Revenues of the company (not GAAP) since the beginning of year were $14.3 billion that is 29% higher in comparison with the third quarter of last year. Taking into account GAAP income was expressed by digit in $14.2 billion, Intel reported. Analysts already counted that the annual profit of the company according to the results of the first three quarters will be $13.9 billion.

Revenue of division of consumer personal computers which is engaged in transactions on portable and desktop chips made $9.4 billion, having shown a gain in 22% in comparison with the third quarter of last year. The division of data processing centers conducting shipment of chips for servers provided income in $2.5 billion that is 15% higher year on year.

Income from microprocessors and chipset of Intel Atom was only $269 million, what is year on year 32% lower. Intel lays hopes for these processors as it transfers emphasis on portable devices and intends to deliver economic chips for tablets and smartphones.

According to Stacy J. Smith (Stacy Smith), the chief financial officer of Intel, sales of Atom fell in the basic due to low demand for netbooks.

Growth of revenue of Intel company began while analytical companies announced the slow growth of quarter deliveries of the PC, in particular because of the increasing interest in tablets. According to IDC, in the third quarter this year world deliveries of the PC grew by only 3.6% in comparison with the third quarter of last year.

Two-digit growth in sales of notebooks of Intel company – result of high corporate demand, Otellini noted. Nevertheless, the market of consumer PCs is weak as demand for these products was mitigated by mature markets of the USA and Western Europe.

By contrast with mature markets, the markets of India, China and Brazil grow quickly, their importance for Intel grows, Otellini emphasized. China is the main PC market today, and Brazil – the third, on value, he told. Revenues of Intel in China, year on year, grew by 12% while income in India grew to 21% a quarter.

Trying to achieve success in the market of tablets and to strengthen interest in the PC, Intel lays the hopes for ultrabooks which the company advances as new category of thin and easy notebooks with the opportunities similar to tablets. The first line of such devices is already announced by the companies Lenovo, Asus and Toshiba at the price from $899.

In addition to personal computers a key factor of growth for Intel are still data processing centers, Otellini told. In the first half of the next year the company is going to release new server processors of Xeon-E5, Romley code-named. According to the CEO demand for Romley will 20-multiply exceed requirement of chips of the previous generation on the basis of architecture of Nehalem which are released in 2010.

Concerning the market of smartphones Intel also Google continue development Android for phones working on the Intel processor Atom code-named Medfield. Tablets and smartphones with Medfield will appear in the first half of the next year, at the same time Otellini noted that over these products the company worked with many partners, though refused to mention names of the companies.

In the fourth financial quarter of Intel expects income in the amount of $14.7 billion, plus or minus $500 million.