Intel Announces Record Quarterly Earnings for Q2

Intel has reported yet another record financial quarter for Q2 2011.

Intel yesterday posted its financial earnings for the second quarter of 2011, revealing a non-GAAP net income of $3.2 billion, which represents a 10 percent increase over the same period last year. Revenue came in at a record $13.1 billion, up $2.3 billion or 22 percent from the same period in 2010. Operating income was posted at $4.2 billion, up 6 percent year-over-year, and EPS (earnings per share) was 59 cents, up 8 cents or 16 percent year-over-year. Gross margin was 62 percent, down 5.5 percentage points year-over-year. On a GAAP basis, the company reported second-quarter revenue of $13.0 billion, operating income of $3.9 billion, net income of $3.0 billion, and EPS of 54 cents.

"We achieved a significant new milestone in the second quarter, surpassing $13.0 billion in revenue for the first time," said Paul Otellini, Intel president and CEO. "Strong corporate demand for our most advanced technology, the surge of mobile devices and Internet traffic fueling data center growth, and the rapid rise of computing in emerging markets drove record results. Intel’s 23 percent revenue growth in the first half and our increasing confidence in the second half of 2011 position us to grow annual revenue in the mid-20 percent range."

According to Intel, PC Client Group revenue is up 11 percent year-over-year and Data Center Group revenue up 15 percent year-over-year while Atom microprocessor and chipset revenue is down 15 percent year-over-year. The company expects revenue of $14 billion, plus or minus $500 million, and gross margin percentage of 64 percent, plus or minus a couple of points, for the third quarter. Non-GAAP revenue is expected to be about $14.1 billion, plus or minus $500 million and excluding certain acquisition-related accounting impacts.