Intel Reports Q2 2012 Earnings; Revenue of $13.5 Billion
By on July 18th, 2012

Intel reported its earnings for the second quarter of 2012 today, with revenue of $13.5 billion and operating profit of $3.8 billion. It generated nearly $4.7 billion in operating cash flow, and distributed nearly $2.2 billion back to shareholders by way of dividends and share buybacks.

Paul Otellini, Intel president and CEO, said:

“The second quarter was highlighted by solid execution with continued strength in the data center and multiple product introductions in Ultrabooks and smartphones. As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment. With a rich mix of Ultrabook and Intel-based tablet and phone introductions in the second half, combined with the long-term investments we’re making in our product and manufacturing areas, we are well positioned for this year and beyond.”

While Intel continues to dominate the desktop and notebook processor scene, it faces increasing competition from ARM powered competitors in the mobile processor segment. Last quarter, it saw impressive revenue growth only in the Data Center Group, while the PC Client Group revenue was up only marginally.

It has projected revenue of nearly $14.3 billion in Q3 2012, with most of the growth expected to be driven by the sales of Ultrabooks powered by Windows 8, and Intel based phones and tablets.

Intel is backing tablet makers who are working on Intel powered Windows 8 tablets. Otellini said that more than 20 Windows 8 tablets will be launched later this year, following the launch of Windows 8.

Though both Intel and Microsoft have been trying to reduce their dependence on each other, their futures are still pretty much intertwined. Intel’s earnings in the coming year will be largely driven by the success or failure of Windows 8 in the marketplace.

via Intel

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Author: Pathik Google Profile for Pathik
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Pathik has written and can be contacted at pathik@techie-buzz.com.

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