Intel has just announced earning for the second quarter of 2010, and what a quarter it was. Intel posted a revenue of $10.8 billion (up 34 percent year-over-year), operating income of $4 billion, net income of $2.9 billion, and an EPS of 51 cents. Not bad! Intel’s CEO, Paul Otellini, said, “Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company’s 42-year history.” Highlights from Intel’s Q2 stat sheet are as follows:
- PC Client Group revenue was up 2 percent sequentially, with record mobile microprocessor revenue.
- Data Center Group revenue was up 13 percent sequentially, with record server microprocessor revenue.
- Intel® Atom™ microprocessor and chipset revenue of $413 million, up 16 percent sequentially.
- The average selling price (ASP) for microprocessors was slightly up sequentially.
- Gross margin was 67 percent, 3 percentage points higher than the midpoint of the company’s expected range of 62 to 66 percent.
- R&D plus MG&A spending was $3.25 billion, higher than the company’s prior expectation of approximately $3.1 billion.
- The net gain from equity investments and interest and other was $204 million, higher than the company’s revised expectation of $180 million.
- The effective tax rate was 31 percent, slightly below the company’s revised expectation of approximately 32 percent.