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Intel has blowout quarter as net income skyrockets 875%

post #1 of 13
Thread Starter 
Chip maker Intel far exceeded Wall Street expectations for its fourth financial quarter of 2009, earning $2.3 billion in net income good for a whopping 875 percent yearly increase.

The company, which provides processors for Apple's line of Mac computers, had total revenue of $10.6 billion, a 28 percent year-over-year increase. The company also recorded a record gross margin of 65 percent.

"Intel's strong 2009 results reflect our investment in industry-leading manufacturing and product innovation," said Paul Otellini, Intel president and CEO. "This strategy has enabled us to generate unprecedented operating efficiencies while growing our traditional businesses and creating exciting new market opportunities, even in difficult economic times."

Intel's 40 cents earnings per share is up 36 cents from 2008, and exceeded Wall Street expectations of 30 cents per share on revenue of $10.17 billion. Intel's results even include a $1.25 billion settlement paid to AMD in the last quarter.

"Our ability to weather this business cycle demonstrates that microprocessors are indispensable in our modern world," Otellini said. "Looking forward, we plan to deliver the benefits of computing to an expanding set of products, markets and customers."

Intel's strength was led by notebooks, and the booming success of Atom processor-powered netbooks added to the company's success. Earlier this week, quarterly PC sales revealed that worldwide fourth-quarter 2009 sales were up 15.2 percent. Mac sales also grew 31 percent in the U.S. to 1.5 million units during the holiday season.

Looking forward, Intel has projected $9.7 billion in revenue, plus or minus $400 million, with gross margin at 61 percent -- guidance higher than what is expected on Wall Street.

Last week, Intel introduced its new line of processors for the start of 2010, including new Core i3, i5 and i7 chips. The mobile Core i5 is considered to be a likely candidate for a coming MacBook Pro refresh.

The new processors are set to improve upon the previous line of Intel's Core 2 Duo chips, which have been utilized in versions of Apple's new MacBook, MacBook Pro, and iMac. Apple uses the mobile variants of Intel's desktop chips for those systems, meaning machines with chips based on the Arrandale architecture could arrive soon.

This week, an Intel promotion advertised a Core i5-based MacBook Pro, though the company later apologized and said the listing was a mistake.
post #2 of 13
Too bad the companies making netbooks don't have those kinds or margins.
post #3 of 13
Quote:
"Intel's strong 2009 results reflect our investment in industry-leading manufacturing and product innovation," said Paul Otellini, Intel president and CEO. "This strategy has enabled us to generate unprecedented operating efficiencies while growing our traditional businesses and creating exciting new market opportunities, even in difficult economic times."


No Paul, it's more like nearly the entire population of the US and Europe decided to hunker down and spend more time at home to save money.

What better way to do that than to get a computer and a $20-$30 month internet connection and a subscription to stream Netflix?



We won't see much general economic activity until the spring driving season arrives.
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post #4 of 13
Shares are down 2%. If I had the money I'd buy $50,000 today, now, and sell tomorrow.
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post #5 of 13
Layoffs tend to reduce your labor costs and jump up one's profits.
post #6 of 13
I held INTC since I was a young man. Now my hair is gray and they still can't break out of $22/share.
post #7 of 13
Quote:
Originally Posted by MJ Web View Post

I held INTC since I was a young man. Now my hair is gray and they still can't break out of $22/share.

So true.\
post #8 of 13
I really wish there was more competition on this front. I don’t care about the margins as much as the slowing of development to maximize those margins.
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post #9 of 13
Quote:
Originally Posted by solipsism View Post

I really wish there was more competition on this front. I dont care about the margins as much as the slowing of development to maximize those margins.

Indeed. And I wonder if the above amazing numbers will come back to haunt intel during nVidia's lawsuit?
post #10 of 13
Build tremendous new processors like the Core i5 and they will come.

Core i5 iMacs are spectacular.

A suggestion for all that cash: Buy belegeared nVidia and do a good deed that will improve Intel graphics going forward.


post #11 of 13
Quote:
Originally Posted by msantti View Post

Too bad the companies making netbooks don't have those kinds or margins.

It's too bad there are only under 10 posts so far. Just goes to show us how many don't know how AMD was fought hard and price wars with intel. Now we are back to where we were ost 10 years ago. I remember when Amd whoopted apples but and ingle had to lower and keep lowering thier prices. Now they are back to charging an Armand leg for thetop of line CPU (Ike we ever saw theprice difference with Apple anyway), NOT.


HERE'S hoping anyway, AMD can come out withsomethung durorisig this year and inyels battles but can't win. We'd still never see the price cuts at apple, no, those prices willslways be a few years back at what theys houd be and maybe they will start marking down the mac along with intel price cuts when pigs fly. Lol
post #12 of 13
Quote:
Originally Posted by Avidfcp View Post

It's too bad there are only under 10 posts so far. Just goes to show us how many don't know how AMD was fought hard and price wars with intel. Now we are back to where we were ost 10 years ago. I remember when Amd whoopted apples but and ingle had to lower and keep lowering thier prices. Now they are back to charging an Armand leg for thetop of line CPU (Ike we ever saw theprice difference with Apple anyway), NOT.


HERE'S hoping anyway, AMD can come out withsomethung durorisig this year and inyels battles but can't win. We'd still never see the price cuts at apple, no, those prices willslways be a few years back at what theys houd be and maybe they will start marking down the mac along with intel price cuts when pigs fly. Lol


Is it me or are you intentionally trying to write bad?
post #13 of 13
net income sky rockets sound great and all.
Truth is it only back to normal. 2 Billion net income was standard for intel in the years before the recession and since they are gaining more and more ground on AMD 2010 is going to be a great year for them. There is no really no challenge out there this coming year. They could completely mess up a new Architecture and would still sell shit loads of the old one.
2011 or 12 this might change a little as ARM will gain access to much smaller frabrication processes and AMD gets its completely new architectures out which might be competitive again.
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