“Intel delivered the best third-quarter revenue in its history,” said Paul Otellini, Intel president and CEO. “We were solidly profitable, with operating income of over $3 billion, reflecting strong across-the-board execution and best-of-class products.”
“As we look to Q4, it is hard to know what impact the financial crisis will have on end customer demand. We are confident that our product portfolio, strong cash flow, commitment to deploying new technology and market momentum will allow us to outpace peer companies at a time when business levels are difficult to predict.”
| Q3 2008 | vs. Q3 2007 | vs. Q2 2008 | |
| Revenue | $10.2 billion | +1% | +8% |
| Operating Income | $3.1 billion | +44% | +37% |
| Net Income | $2 billion | +12% | +26% |
| EPS | 35 cents | +17% | +25% |
| Q3 2008 results included an impairment of the Numonyx investment that net of tax benefits resulted in a $162-million charge. Q3 2007 results included $125 million in restructuring and asset impairment charges; the results also included significantly higher revenue from divested businesses such as NOR flash and cellular baseband products. Q2 2008 results included $96 million in restructuring charges. | |||
Key Financial Information
- Microprocessor and chipset units both set records.
- Revenue from Intel® Atom™ microprocessors and chipsets into the new netbook and nettop segments was approximately $200 million.
- The total microprocessor average selling price (ASP) was lower sequentially.
- Excluding shipments of Intel Atom microprocessors, the ASP was flat.
- Gross margin of 58.9 percent was up from 55.4 percent in the second quarter. The increase was driven primarily by lower microprocessor unit costs and higher microprocessor revenue.
- The net loss from equity investments and interest and other was $265 million, greater than the expected net loss of $30 million, primarily driven by a $250-million impairment of the company ’ s investment in Numonyx.
- The effective tax rate was 28.9 percent, lower than the expectation of approximately 33 percent.
- The company used $2.1 billion to repurchase 93 million shares of its common stock.
