Intel easily beat expectations in its Q2 result, posting what it said was its strongest growth spurt since 1988 and tipping an improved second half.
Its $8 billion revenue was down 15% year-on-year, but grew 12% sequentially, Intel said. Wall Street analysts had predicted revenue of $7.28 million, according to Barron's.
CEO Paul Otellini said the result was “the strongest first- to second-quarter growth since 1988 and a clear expectation for a seasonally stronger second half.”
Microprocessor shipments increased, but average selling price declined for every category but Intel's Atom brand. Despite this, gross margin was a higher than expected 50.8%.
The company posted a net loss of $398 million, due largely to the record $1.4 billion fine it was forced to pay to European antitrust regulators in My.
On a non-GAAP basis, net income was $1 billion – still $552 million lower than a year ago, but $420 million higher than during Q1 2009.
Intel's mobility group reported an operating income of $803 million on revenue of $3.48 billion.
Looking ahead to the third quarter, Intel expects to post revenue of around $8.5 billion, a gross margin of 53% and $40 million worth of restructuring and asset impairment charges.
The company plans to have spent $10.6-$10.8 billion on R&D and mergers and acquisitions - and $4.7 billion in capex - for the whole of 2009.
Intel’s stock on Nasdaq rose 7.25% to $18.05 in after-hours trading yesterday.
