SAN FRANCISCO—Intel Corp. Thursday (Jan. 13) reported record sales for the fourth quarter and full year 2010, beating analysts' expectations. The No. 1 chip vendor also said it would boost capital spending this year by 73 percent compared with last year.
"2010 was the best year in Intel's history," said Paul Otellini, Intel president and CEO, in a statement. "We believe that 2011 will be even better,”
Intel (Santa Clara, Calif.) said fourth quarter sales reached $11.5 billion, up 3 percent compared with the third quarter of 2010 and up 8 percent compared with the fourth quarter of 2009. The company posted a net income for the quarter of $3.4 billion, or 59 cents per share, up 15 percent from the third quarter and up 48 percent compared to the fourth quarter of 2009.
Intel's fourth quarter results exceed consensus analysts' expectations, which called for sales of $11.37 billion and earnings per share of 59 cents, according to Yahoo Finance.
For the full year 2010, Intel reported sales of $43.6 billion, up 24 percent compared with 2009. The company posted a net income of $11.7 billion, or $2.05 per share, up 75 percent compared with 2009.
Intel said it expects sales for the first quarter of 2011 to be between $11.1 billion and $11.9 billion. The company said it expects capital spending for 2011 to be about $9 billion, up about 73 percent from $5.2 billion in 2010.
Intel President and CEO Paul Otellini said the company's goal is to grow revenue by 10 percent in 2011.
Intel said the average selling price for microprocessors increased slightly during the fourth quarter. The company said its PC Client Group revenue was flat sequentially, while Data Center Group revenue grew 15 percent and other Intel Architecture Group remained flat. Atom microprocessor and chip set revenue of $391 million was also flat sequentially, Intel said.
Intel said it recorded a net gain of $140 million from equity investments and interest, better than the company’s expectations. Intel said it expects to gain $200 million in the first quarter of 2011 from equity investments and interest.
In the first quarter, Intel expects to spend about $3.4 billion on R&D plus mergers and acquisitions, flat with what it spent in the fourth quarter of 2010.