Intel said its quarterly net income rose 44 percent over last twelvemonth , reaching $ 1.3 billion as low selling prices for its microprocessors were offset by higher than expect unit shipment .
The results came despite an ongoing damage state of war as Intel and its rival Advanced Micro Devices struggle for larger shares of the processor market place . Both company have been cutting prices on their chips as they upgrade their Cartesian product from standard chips to dual - pith and quad - inwardness processors .
Intel is also in the concluding stagecoach of a corporate reorganization that included the layoff of thousands of workers in 2006 , and at least 1,800 more layoffs planned for August . The company incurred restructuring charges of $ 82 million during the most recent quarter as it continued to set to the change , Intel said on Tuesday .
Despite those challenges , Intel earned 22 cents per portion on revenue of $ 8.7 billion for the quarter ending June 30 , puzzle Wall Street expectations that the company would garner 19 centime per portion on revenue of $ 8.54 billion , according to analysts polled by Thomson Financial . Intel also exhaust its own mark from the second quarter of 2006 , when it earned 15 cents per share on tax income of $ 8.01 billion .
One factor in Intel ’s favor this fourth part was the May launching of its Santa Rosa upgrade to the popular Centrino notebook personal computer program , Intel chief executive officer Paul Otellini said in a conference call with investor . Intel compact an improved processor , chipset and wireless card to keep its bombastic portion of the fast - growing notebook computer marketplace section .
Intel , which supply processors to Apple , also saw strong gross sales for its musculus quadriceps femoris - core Xeon host chips , although the company tolerate from competitive market place price in low - end consumer microcomputer sales , Otellini say . Intel also had miscellaneous results in New York minute memory chips , where it generated strong tax income from NAND scrap but NOR flash chip sales agreement were weak than expected .
Those flash storage results helped to labor Intel ’s gross margin down to 46.9 percent for the quarter , lower than the ship’s company ’s finish of 48 pct , Intel Chief Financial Officer Andy Bryant said during the call .
Bryant prefigure the company would cursorily rebound in the third quarter , forecasting a gross margin of 52 percent and revenue between $ 9.0 billion and $ 9.6 billion . If Intel met the top death of that destination , it would match the Wall Street estimate of $ 9.36 billion and would beat its own taxation mark of $ 8.74 billion for the third quarter last yr .
First , Intel face some problematical challenges in the eternal sleep of 2007 , because it plan to launch its new Penryn desktop chip shot intention just as AMD launches a corresponding Phenom chip . Both products will reach microcomputer vender during a tough time in the semiconducting material securities industry .
In May , the analyst firm Gartner bring down its 2007 revenue maturation forecast for the semiconductor market place to 2.5 per centum from an original estimation of 6.4 per centum maturation over 2006 levels . Gartner assigned part of the inculpation to the cost warfare between Intel and AMD , as well as to plunging price for DRAM ( dynamic RAM ) memory microchip .
