Archive for the ‘Intel Calms the Tech Waters’ Category

Intel Calms the Tech Waters

April 16, 2008

Despite the twists and turns and perpetual disruptions of the tech industry, Intel still remains a bellweather. So the chip giant provided a bit of relief to the wobbly tech sector when it said demand for its core computer and server chips remained strong. Profits fell 12% year-over-year, though, due to the struggling and commoditized business of NAND flash memory chips–silicon used in everything from music players and digital cameras to a growing number of laptop hard drives.

The highlights:

* First-quarter sales totaled $9.7 billion, an improvement of 9% over the year-ago quarter. Intel said revenue for server chips set a single-quarter record, while the PC chip business held its own.

* The company said it expects its second-quarter revenue to total between $9 billion and $9.6 billion, suggesting that analysts may need to tweak their forecasts upward.

* Intel is more global than previousy realized. During a conference call with analysts, Chief Executive Officer Paul Otellini said “75% of [Intel’s] revenue coming from outside the U.S. right now.”

See a good recap of their earnings report from my BusinessWeek colleague Arik Hesseldahl.