“Intel had another strong quarter with revenue at the high end of expectations and earnings up substantially year over year,” said Paul Otellini, Intel president and CEO. “As we enter the second half, demand remains strong for our microprocessor and chipset products in all segments and all parts of the globe.”
| Q2 2008 | vs. Q2 2007 | vs. Q1 2008 | |
| Revenue | $9.5 billion | +9% | -2% |
| Operating Income | $2.3 billion | +67% | +9% |
| Net Income | $1.6 billion | +25% | +11% |
| EPS | 28 cents | +27% | +12% |
| Results for the quarter included significantly lower NOR flash memory revenue along with restructuring and asset impairment charges of $96 million. Results for the first quarter of 2008 included the effects of restructuring and asset impairment charges that lowered EPS by 4 cents. Results for last year’s second quarter included tax items that increased EPS by approximately 3 cents along with restructuring charges of $82 million. | |||
Financial and Key Product Information
- Mobile microprocessor and chipset units both set records.
- Total microprocessor units were up sequentially and higher than seasonal.
- Gross margin of 55.4 percent was up from 53.8 percent in the first quarter and slightly below the midpoint of the previous expectation as growth in demand for lower-priced notebook PCs resulted in a lower than expected microprocessor average selling price.
- Restructuring and asset impairment charges of $96 million were lower than the previous expectation of approximately $250 million.
- The effective tax rate for the quarter was 31 percent, lower than the previous expectation of approximately 33 percent due to a tax settlement.
- The company used $2.5 billion to repurchase 109 million shares of its common stock.
