Santa Clara (CA) – Intel today announced Q1 revenues of $8.9 billion, down 1% year over year and net income of $1.6 billion, up 19% over the same period last year.

Intel summed up a solid quarter on Tuesday, as the company’s Q1 revenue retracted only slightly from the seasonally strong Q4. Net income was impacted by a $300 million reversal of previously accrued taxes.

While rival AMD had mentioned that it was confronted with a decline in processor shipments and a decrease in average selling prices, Intel apparently was able to hold its business somewhat stable: Intel said that total microprocessor shipments were lower sequentially and average selling prices were “slightly” lower due to a decline in server processor units. Desktop and mobile processors maintained their ASPs, Intel said.

Intel expects Q2 revenues to come in $8.2 billion and $8.8 billion, well below the Q1 result. Intel stock shot up more than 3% or about 60 cents in after hour trading following the announcement.

Q2 not well below; slightly lower than seasonal

Apr 17, 2007 17:39     

due to expected burnoff of AMD inventory. The Big news was the expectation that gross margins would be substantially better in the 2H than previously expected. Apparently they do not believe Barcelona will have a material impact on their business.
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[quote="flamingEndian"]Apparently they do not belie...

Apr 17, 2007 19:46     

[quote="flamingEndian"]Apparently they do not believe Barcelona will have a material impact on their business.[/quote] That's because it won't. AMD won't begin to see a payoff from Barcelona until at least Q1 '08, if at all. For the remainder of this year Intel will not have serious competition in terms of market share and revenue/gross margin. AMD might beat them in performance (Barcelona), but that's only half the battle. (these are just my opinions, not fact)

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Real Profits

Apr 18, 2007 07:07     

Are you taking into account the tax refund? That's really a one time plus item and no reason to get overjoyed. This is not a great quarter.
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