Intel yesterday announced a solid set of 3rd quarter numbers across the board. Net earnings for the period were just under $2 billion, or 32 cents per share, on overall revenue of $9.96 billion. That compares with earnings of $1.91 billion, or 30 cents per share, on revenue of $8.47 billion in the same period in 2004.
Intel saw a large build up of inventory in their latest quarter which they expect to sell-off in the 4th quarter as they clear the decks for their new dual-core processors coming out early next year. This sounds to me like an early warning that 4th quarter margins could go down a little as they discount this inventory to clear it.
"The combination of our 65nm manufacturing network, broad range of new dual-core processors and unique ability to provide platform solutions positions us well for continued growth," Otellini said in a statement. And the analysts are predicting strong growth of PC and server shipments for the next three months.
Notebooks have become a significant profit center for Intel. In the first quarter of this year, notebook chips accounted for 30 percent of Intel's output. That figure is expected to rise to about 33 percent next year, Intel has said.
This all seems to lead to Intel producing a solid set of numbers for the 4th quarter and the year as a whole. Intel are predicting that they will set a record next quarter by delivering their first quarter with sales over $10bn. Let's see, but it seems highly likely.
The Morning After: Friday, August 18th 2017
51 minutes ago