“Intel’s third-quarter results set all-time records for revenue and operating income,” said Paul Otellini, Intel president and CEO. “These results were driven by solid demand from corporate customers, sales of our leadership products and continued growth in emerging markets. Looking forward, we continue to see healthy worldwide demand for computing products of all types and are particularly excited about our next-generation processor, codenamed Sandy Bridge, and the many new designs around our Intel Atom processors in everything from the new Google TV products to a wide array of tablets based on Windows, Android, and MeeGo operating systems.”
Q3 2010 Highlights
- PC Client Group revenue was up 3 percent sequentially, with record mobile microprocessor revenue.
- Data Center Group revenue was up 3 percent sequentially, with record server microprocessor revenue.
- Intel Atom microprocessor and chipset revenue of $396 million, down 4 percent sequentially.
- The average selling price (ASP) for microprocessors was approximately flat sequentially and up significantly year-over-year.
- Gross margin was 66 percent, consistent with the company’s revised expectation of 65 to 67 percent.
- R&D plus MG&A spending was $3.2 billion, consistent with the company’s expectation.
- The net gain from equity investments and interest and other was $115 million, lower than the company’s revised expectation of $175 million.
- The effective tax rate was 30.5 percent, slightly below the company’s expectation of approximately 32 percent.
The Outlook for the fourth quarter does not include the effect of any acquisitions, divestitures or similar transactions that may be completed after Oct. 12.
- Revenue: $11.4 billion, plus or minus $400 million.
- Gross margin: 67 percent, plus or minus a couple percentage points.
- R&D plus MG&A spending: Approximately $3.2 billion.
- Impact of equity investments and interest and other: Approximately $20 million gain.
- Depreciation: Approximately $1.1 billion.
- Tax rate: Approximately 31 percent.
- Full-year capital spending: $5.2 billion, plus or minus $200 million.
During the quarter, Intel’s corporate representatives may reiterate the Business Outlook during private meetings with investors, investment analysts, the media and others. From the close of business on Nov. 24 until publication of the company’s fourth-quarter earnings release, Intel will observe a “Quiet Period” during which the Business Outlook disclosed in the company’s news releases and filings with the SEC should be considered as historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.
A detailed discussion of these and other factors that could affect Intel’s results is included in Intel’s SEC filings, including the report on Form 10-Q for the quarter ended June 26, 2010.