Intel has announced some good news that has provided a boon to tech-sector investors.
At the start of June 2009, financial expectations placed the Q2 earnings of Santa Clara, Calif.-based Intel Corp. at around $7.28 billion. On Tuesday, July 15, Intel announced the actual figure – and it was much more than that early estimate.
In a conference call, Intel executives reported that the company’s Q2 revenue as being just barely over $8 billion, nearly a $800 million more than the company reported expecting just one month prior.
During Tuesday’s conference call, Intel’s president and CEO Paul Otellini told reporters that Intel’s customers have “signaled increased confidence,” saying that the company’s second quarter reflects “improving conditions in the PC market segment.”
Indeed, the market rallied following Intel’s report. Even Intel competitor Advanced Micro Devices Inc. benefitted, seeing its stock rise at the news of a tech-sector comeback. Microsoft and Cisco and IBM also saw stock value increases.
In a press release, Intel reported the following:
“Excluding the effects of the European Commission fine, [Intel] had non-GAAP operating income of $1.4 billion, net income of $1.0 billion and EPS of 18 cents. On a GAAP-basis, the company reported an operating loss of $12 million, a net loss of $398 million and a loss per share of 7 cents.”
Otellini says the Q2 revenues represent Intel’s “strongest first- to second-quarter growth since 1988 and a clear expectation for a seasonally stronger second half.”