It also set a bullish forecast for the fourth quarter, although it pointed out that while it was seeing strong business in a range of key markets, it has yet to see a solid turnaround in the US corporate market.
Intel also took the opportunity to say it was right all along to continue investing heavily through the PC market downturn that began three years ago. Some had questioned the company’s decision to maintain high levels of R&D and capital spend in the face of a stagnant technology market.
Sales in the quarter ending September 27 were $7.8 billion, up 20.4% on the year. Operating profits were $2.3 billion, a 139% rise on the year, while net income was $1.7 billion, up 141.5% on the year. This resulted in earnings per share of $0.25. For the year to date, net income was up 67.7% to $3.5 billion, on sales up 9.2% to $21.4 billion.
The third quarter revenue figures were at the top end of the $7.6 billion to $7.8 billion range set in September. The September range was itself a rise on the original range of $7.3 billion to $7.8 billion set in August.
For the fourth quarter, Intel has said it expects revenue to come in between $8.1 and $8.7 billion, with gross margin of 60%, plus or minus a couple of points, compared to the third quarter’s 58.2% margin.
The figures represent the company’s best sequential third quarter growth in over 25 years, and the best year on year third quarter performance since 1996.
While it showed strong growth overall, some key markets are still not firing on all cylinders, with only modest growth in the US corporate market.
The third quarter figures were powered by the vendor’s Intel Architecture Group, which makes its mainstream PC processors. This group accounted for $6.8 billion of sales, and $2.9 billion of operating profit. Its wireless and communications groups both showed operating losses.
This article was based on material originally published by ComputerWire.
