SAN JOSE, Calif. Intel Corp. posted first-quarter revenue of $8.9 billion, net income of $1.6 billion and earnings per share (EPS) of 27 cents. The results included the effect of a $300-million reversal of previously accrued taxes that increased EPS by approximately 5 cents.
Sales fell 9 percent from the previous period and 1 percent from the like quarter a year ago. Net income was up 7 percent from the previous period and up 19 percent from a year ago.
Total microprocessor units were lower sequentially, according to Intel (Santa Clara, Calif.). The ASP was slightly lower driven by a lower mix within server processors, with desktop and mobile ASPs approximately flat, according to Intel. Chipset, motherboard and flash memory units were lower sequentially.
There is good news for Intel. ''Intel in Q1 gained share in microprocessor sales compared to rival Advanced Micro Devices Inc., leading to AMD's recent Q1 results warning,'' according to iSuppli Corp., a market research firm.
''Intel likely gained 3 percentage points or less in market share compared to AMD in Q1,'' according to Intel. ''Not only are Intel's new-generation dual-core microprocessors chalking up gains, but the company is presently the only game in town in quad-core microprocessors, giving it an advantage over AMD, which presently doesn't have such a part shipping.''
For Intel, sales are expected to be between $8.2 billion and $8.8 billion in Q2. The company reached its goal of reducing the workforce to approximately 92,000 people, meeting the target one quarter ahead of schedule.
In 2007, Intel's R&D spending will be approximately $5.6 billion, higher than the previous expectation of approximately $5.4 billion.