Intel (Santa Clara, Calif.) reported revenue of $12.8 billion for the quarter, up 12 percent from the previous quarter and up 25 percent compared to the year-ago quarter. Intel posted a net income in accordance with generally accepted accounting principles (GAAP) for the first quarter of $3.3 billion, or 56 cents per share, flat with the previous quarter and up 29 percent from the year ago quarter.

On a pro forma basis, excluding charges, Intel reported a net income of $3.3 billion, or 59 cents per share for the quarter.

Consensus analysts’ expectations had called for Intel to report sales of $11.6 billion and pro form earnings per share of 46 cents, according to Yahoo Finance.

"The first-quarter revenue was an all-time record for Intel fueled by double digit annual revenue growth in every major product segment and across all geographies," said Paul Otellini, Intel president and CEO, in a statement. Otellini said the first quarter numbers put Intel in a position to grow more than 20 percent in 2011.

Intel said revenue from its PC Client group revenue improved by 17 percent year-to-year, while Data Center Group p revenue climbed by 32 percent, Intel said. Intel said its Atom microprocessor and chipset revenue was $370 million, up 4 percent year-over-year.

Some analysts had warned that Intel’s first quarter numbers would disappoint due to what some saw as lagging PC sales. But last week market research firm IC Insights Inc. said Intel was likely to beat the midpoint of its first quarter guidance—$11.6 billion—on evidence that the microprocessor market posted double digit growth in the first quarter compared to the fourth quarter of 2010.

Intel said it expects sales for the second quarter to be between $12.3 billion and $13.3 billion. For the full year, Intel said it expects to achieve gross margins of around 63 percent. The company said it expects to spend between $9.8 billion and $10.6 billion on capital expenditures in 2011.

Asked via email if he was surprised how handily Intel exceeded even the top end of its guidance for the first quarter, Bill McClean, president and CEO of IC Insights, said he thought it was possible that Intel’s first quarter numbers would have come in even stronger. According to McClean’s analysis of data provided by World Semiconductor Trade Statistics, microprocessor sales—which represent 75 percent of Intel’s revenues—were up 44 percent year-to-year in January and February.

"However, with PC sales sluggish in 1Q11, there may be a slight payback over the next couple of quarters," McClean said. He added that Intel should still easily grow by more than 20 percent in 2011.

IC Insights projects that the microprocessor market will grow 20 percent in 2011 and that the overall semiconductor market will grow by about 10 percent.

By: DocMemory
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