Skal tablet markedet trække Intel i rekord igen? Det er på onsdag det sker. Jeg tror der kan være gode overraskelser i Intel.
Enterprise Strength and New Products Drive Record Intel Results
Non GAAP Results
Revenue $12.9 billion, up $2.6 billion, 25 percent year-over-year
Gross Margin of 62 percent, down 1 percentage point year-over-year
Operating income $4.3 billion, up $862 million, 25 percent year-over-year
Net income $3.3 billion, up $830 million, 34 percent year-over-year
EPS 59 cents, up 16 cents, 37 percent year-over-year
GAAP Results
Revenue $12.8 billion, up $2.5 billion, 25 percent year-over-year
Gross Margin of 61 percent, down 2 percentage points year-over-year
Operating income $4.2 billion, up $710 million, 21 percent year-over-year
Net income $3.2 billion, up $718 million, 29 percent year-over-year
EPS 56 cents, up 13 cents, 30 percent year-over-year
SANTA CLARA, Calif., April 19, 2011 - Intel Corporation today reported record EPS and revenue on both a GAAP and non-GAAP basis.
On a non-GAAP basis, revenue was $12.9 billion, operating income was $4.3 billion, net income was $3.3 billion, and EPS was 59 cents. On a GAAP basis, the company reported first-quarter revenue of $12.8 billion, operating income of $4.2 billion, net income of $3.2 billion, and EPS of 56 cents.
The company generated approximately $4.0 billion in cash from operations, paid cash dividends of $994 million, and used $4.0 billion to repurchase 189 million shares of common stock.
"The first-quarter revenue was an all-time record for Intel fueled by double digit annual revenue growth in every major product segment and across all geographies," said Paul Otellini, Intel president and CEO. "These outstanding results, combined with our guidance for the second quarter, position us to achieve greater than 20 percent annual revenue growth."
Enterprise Strength and New Products Drive Record Intel Results
Non GAAP Results
Revenue $12.9 billion, up $2.6 billion, 25 percent year-over-year
Gross Margin of 62 percent, down 1 percentage point year-over-year
Operating income $4.3 billion, up $862 million, 25 percent year-over-year
Net income $3.3 billion, up $830 million, 34 percent year-over-year
EPS 59 cents, up 16 cents, 37 percent year-over-year
GAAP Results
Revenue $12.8 billion, up $2.5 billion, 25 percent year-over-year
Gross Margin of 61 percent, down 2 percentage points year-over-year
Operating income $4.2 billion, up $710 million, 21 percent year-over-year
Net income $3.2 billion, up $718 million, 29 percent year-over-year
EPS 56 cents, up 13 cents, 30 percent year-over-year
SANTA CLARA, Calif., April 19, 2011 - Intel Corporation today reported record EPS and revenue on both a GAAP and non-GAAP basis.
On a non-GAAP basis, revenue was $12.9 billion, operating income was $4.3 billion, net income was $3.3 billion, and EPS was 59 cents. On a GAAP basis, the company reported first-quarter revenue of $12.8 billion, operating income of $4.2 billion, net income of $3.2 billion, and EPS of 56 cents.
The company generated approximately $4.0 billion in cash from operations, paid cash dividends of $994 million, and used $4.0 billion to repurchase 189 million shares of common stock.
"The first-quarter revenue was an all-time record for Intel fueled by double digit annual revenue growth in every major product segment and across all geographies," said Paul Otellini, Intel president and CEO. "These outstanding results, combined with our guidance for the second quarter, position us to achieve greater than 20 percent annual revenue growth."
Den her er lavet sidste september men selve casen er rimeligt uforandret, nøgletallene er lidt ændret fordi vi er oppe 25% siden videoen. Deres indkøb bidrager med 496 mio. dollars, hvilket er OK.
18/7 2011 10:37 vouskootia 0
44111 Tror ikke det bliver tablet markedet der traekker Intel i rekord - da Intel stort set intet tablet marked har 
http://www.fool.com/investing/general/2011/05/02/intels-looking-to-chip-in-on-the-tablet-market.aspx
De vil dog meget gerne ind paa det marked (og ogsaa mobil) - og er vel ved at vaere nogenlunde klar med et produkt der kan konkurrere?
Nokia+Intel (Meego) er lige blevet droppet af Nokia - et stort blow til Intel's mobil sats.
Windows8 skulle efter PR moellen ogsaa kunne koere paa ARM cpu'er... (Microsoft misser ogsaa tablet markedet pt).
Kunne Intel og MS indgaa i et tablet marriage igen som paa desktoppen i sin tid? (og har de en chance paa tablets?)
ARM bliver nok presset den naeste periode - og det bliver spaendende at se vinderne (MIPS er ogsaa klar med en mobil/tablet konkurrent)
Haaber konkurrencen resulterere i endnu billigere smartphones/tablets - med vaesentlig laengere batteri-tid
Er Intel's cash-cow ikke server/desktop/laptop computere (cpu+chipset)?
Fald i desktop/laptop markedet kan nok opvejes af stigninger i server? (cloud trend?)
http://www.fool.com/investing/general/2011/05/02/intels-looking-to-chip-in-on-the-tablet-market.aspx
De vil dog meget gerne ind paa det marked (og ogsaa mobil) - og er vel ved at vaere nogenlunde klar med et produkt der kan konkurrere?
Nokia+Intel (Meego) er lige blevet droppet af Nokia - et stort blow til Intel's mobil sats.
Windows8 skulle efter PR moellen ogsaa kunne koere paa ARM cpu'er... (Microsoft misser ogsaa tablet markedet pt).
Kunne Intel og MS indgaa i et tablet marriage igen som paa desktoppen i sin tid? (og har de en chance paa tablets?)
ARM bliver nok presset den naeste periode - og det bliver spaendende at se vinderne (MIPS er ogsaa klar med en mobil/tablet konkurrent)
Haaber konkurrencen resulterere i endnu billigere smartphones/tablets - med vaesentlig laengere batteri-tid
Er Intel's cash-cow ikke server/desktop/laptop computere (cpu+chipset)?
Fald i desktop/laptop markedet kan nok opvejes af stigninger i server? (cloud trend?)
100 tablets bruger oak trail?
http://www.pcworld.com/article/215651/otellini_intels_new_tablet_chip_gaining_momentum.html
Spørgsmålet er selvfølgelig om det får gennemslag i dette kvartal.
http://www.pcworld.com/article/215651/otellini_intels_new_tablet_chip_gaining_momentum.html
Spørgsmålet er selvfølgelig om det får gennemslag i dette kvartal.
Der er stadig vækst i labtop desktop markedet for Apple desuden.
18/7 2011 11:13 vouskootia 044115 100 tablet design-demo's som ikke er paa markedet bruger oak trail?
De skal bare ogsaa helst ud i markedet og saelge
Har du set en tablet af de 100 tablets med oak trail saelge noget af betydning?
(og de fleste er vel microsoft tablets - er der set nogen microsoft tablets saelge noget af betydning?)
Tablets der saelger stort pt. er enten Android (ARM) eller Apple-Ipad (ARM) - saa tror ikke det vil faa nogen betydning for Intel i dette kvartal (men tror nu stadig Intel faar et fint kvartal).
Det naeste halve/hele aar tror jeg der kommer mere afklaring paa 'vinderen' af tablet/mobil markedet... Intel, ARM, MIPS, flere?
De skal bare ogsaa helst ud i markedet og saelge
Har du set en tablet af de 100 tablets med oak trail saelge noget af betydning?
(og de fleste er vel microsoft tablets - er der set nogen microsoft tablets saelge noget af betydning?)
Tablets der saelger stort pt. er enten Android (ARM) eller Apple-Ipad (ARM) - saa tror ikke det vil faa nogen betydning for Intel i dette kvartal (men tror nu stadig Intel faar et fint kvartal).
Det naeste halve/hele aar tror jeg der kommer mere afklaring paa 'vinderen' af tablet/mobil markedet... Intel, ARM, MIPS, flere?
Men jeg prøver ikke at argumentere for at Intel skal være vinder af dette nichemarkedet, blot at der kommer vækst derfra. Og det er svært ikke at være enig heri, da man i de forrige kvartaler jo ikke har haft tablet salg 
Men lige nu er det apple (mest), samsung og htc der kører dette marked. Og ingen har så vidt jeg ved Intel chips indeni.
Der er ingen tvivl om at Intels vækst kommer fra Apple blandt andet, som har vækst i antal units hvert kvartal. Dette marked for PC er for nedadgående, men server vækst må mere end gøre op for denne nedgang.
Men lige nu er det apple (mest), samsung og htc der kører dette marked. Og ingen har så vidt jeg ved Intel chips indeni.
Der er ingen tvivl om at Intels vækst kommer fra Apple blandt andet, som har vækst i antal units hvert kvartal. Dette marked for PC er for nedadgående, men server vækst må mere end gøre op for denne nedgang.
18/7 2011 13:08 vouskootia 044117 Ja, fra 0 er alt jo vaekst - men vil det give overskud endnu tror du? (de skal vel ogsaa spoette en masse i reklame/udvikling/osv for at faa tablet producenter til at bruge den)
Intel's oak trail har vist et energiforbrug paa ca. 3W under brug, mens ARM'en i Ipad2 er ca. 0.5W ved brug - Intel's er saa formentlig hurtigere, og kan koere Windows OS (x86)
MIPS laver ogsaa et alternativ der kan koere Android - med mindre energiforbrug og chip-stoerrelse end ARM (3 mips cores paa 2 arm cores plads) - og ca. samme cpu power per core.
Intels salgsargument maa derfor vaere Microsoft+Windows7/8+big-brands - og deres success dermed afhaengig af Microsofts mht. tablets....?
Hvad vil 'cloud' komme til at betyde for Intel og AMD ifm. Servere?
Cloud providers koeber CPU/chipset efter 'most-bang-for-the-bucks' - mens de traditionelle firma-kunder foerhen har koebt 'most-bang-at-any-cost' in a single unit.
Dvs. formentlig ikke nyeste generationer/high-specs. der bliver koebt ind? (og dem med mest profit-margin for Intel/AMD? - vel naermest dem med mindst profit-margin istedet?)
Selv har jeg en ca. 5 aar gammel laptop (thinkpad x-series), jeg koerer linux. maerker ingen forskel i hastighed i forhold til nyere/high-spec laptops i forhold til de opgaver jeg laver (programmering og browser brug).
Det stoerste speed-boost oplevede jeg ved upgrade til en SSD disk (en Intel SSD, samt selvf. RAM upgrades.
- men vil det give overskud endnu tror du? (de skal vel ogsaa spoette en masse i reklame/udvikling/osv for at faa tablet producenter til at bruge den)Intel's oak trail har vist et energiforbrug paa ca. 3W under brug, mens ARM'en i Ipad2 er ca. 0.5W ved brug - Intel's er saa formentlig hurtigere, og kan koere Windows OS (x86)
MIPS laver ogsaa et alternativ der kan koere Android - med mindre energiforbrug og chip-stoerrelse end ARM (3 mips cores paa 2 arm cores plads) - og ca. samme cpu power per core.
Intels salgsargument maa derfor vaere Microsoft+Windows7/8+big-brands - og deres success dermed afhaengig af Microsofts mht. tablets....?
Hvad vil 'cloud' komme til at betyde for Intel og AMD ifm. Servere?
Cloud providers koeber CPU/chipset efter 'most-bang-for-the-bucks' - mens de traditionelle firma-kunder foerhen har koebt 'most-bang-at-any-cost' in a single unit.
Dvs. formentlig ikke nyeste generationer/high-specs. der bliver koebt ind? (og dem med mest profit-margin for Intel/AMD? - vel naermest dem med mindst profit-margin istedet?)
Selv har jeg en ca. 5 aar gammel laptop (thinkpad x-series), jeg koerer linux. maerker ingen forskel i hastighed i forhold til nyere/high-spec laptops i forhold til de opgaver jeg laver (programmering og browser brug).
Det stoerste speed-boost oplevede jeg ved upgrade til en SSD disk (en Intel SSD
, samt selvf. RAM upgrades.19/7 2011 14:01 luccio 044157 har Nokia ikke lige annonceret N9 baseret på meego?
Det er selvfølgelig underligt hvad de vil med en telefon baseret på meego efter at de har meddelt at de droppper det...
Det er selvfølgelig underligt hvad de vil med en telefon baseret på meego efter at de har meddelt at de droppper det...
Jo men jeg tror man skal se det som en proces, hvor de har en pipeline af telefoner og så kommer det her på tværs af den.
Jeg tror også at deres prisnedsættelser nu skal ses som et ønske om at cleare hele deres lager af gammel økosystem telefoner.
Jeg tror også at deres prisnedsættelser nu skal ses som et ønske om at cleare hele deres lager af gammel økosystem telefoner.
19/7 2011 15:07 troldmanden 044159 Hej luccio
Velkommen til ProInvestor som aktiv skribent
Jo det er rigtigt Nokia har offentliggjort N9 som køre med Meego. Og den er faktisk blevete modtaget helt overvældende af anmelder og deres bruger base. Så den kan nok gå hen og opnå ent rigtigt godt salg. Men tror ærlig talt ikke det er noget ledelsen håber på. For så skabes der bare fornyet ståhej omkring hvorfor de droppede den platform frem for Windows 7.
Jeg er en af dem der tror Nokia om 18-24 mdr vil være fuld ud med i kampen igen. Med alle de kræfter Micorsoft lægger i platformen og med verdens trods alt største mobil tlf producent så tror jeg på projektet
Velkommen til ProInvestor som aktiv skribent
Jo det er rigtigt Nokia har offentliggjort N9 som køre med Meego. Og den er faktisk blevete modtaget helt overvældende af anmelder og deres bruger base. Så den kan nok gå hen og opnå ent rigtigt godt salg. Men tror ærlig talt ikke det er noget ledelsen håber på. For så skabes der bare fornyet ståhej omkring hvorfor de droppede den platform frem for Windows 7.
Jeg er en af dem der tror Nokia om 18-24 mdr vil være fuld ud med i kampen igen. Med alle de kræfter Micorsoft lægger i platformen og med verdens trods alt største mobil tlf producent så tror jeg på projektet
18/7 2011 13:12 le 044119 jeg tror faktisk at intel vil skuffe i 2q fordi de fleste meldinger fra producenter af PC'er er ret negative i øjeblikket
18/7 2011 21:51 le 044138 Intel: JP Morgan Cuts Estimates, Bernstein Sees Weak PC Trends.Google For Netflix? Facebook For CRM? Piper's Crazy M&A IdeasIBM Q2 Revenue Crushes Estimates; Raises '11 EPS To $13.25EmailPrintPermalinkShare:
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By Tiernan Ray
Analysts are tweaking their models for Intel (INTC) in advance of the chip maker's Q2 report on Wednesday afternoon, but also taking a moment to throw more doubts in the way of Intel's relatively rosy outlook for PC growth this year.
JP Morgan's Christopher Danely today cut estimates for Intel for this year, remarking that data points for the PC market "remain weak," but reiterated an Overweight rating on the stock and a $25 price target.
Danely cites among troubling indicators recent remarks from Fairchild Semiconductor (FCS) last week, and from Microchip Technology (MCHP) just before them.He also notes that contract makers of notebook computers in Taiwan expect Q3 shipments to rise just 10% from Q2′s level, which is below normal seasonal patterns for a 15% increase.
Danely cut his 2011 revenue and EPS estimates to $53.1 billion and $2.30 per share, from a prior $54.7 billion and $2.35. He cut his 2012 estimate to $55 billion and $2.32 from a prior $59 billion and $2.15.
Sanford Bernstein's Stacy Rasgon today reiterated a Market Perform rating on Intel shares, while maintaining his outlook for $12.7 billion in revenue for Q2 and EPS of 50 cents, below the $12.82 billion in revenue and 51 cents the Street is modeling. Rasgon writes that he still thinks Intel's forecast of double-digit PC growth in unit terms for the full year is not supported by the data.
Q2 PC growth data, according to recently released Gartner and IDC numbers, were stronger than is typically seasonal, but "likely not nearly enough to drive double digit growth for the year." Units rose 1% in Q2 from Q1′s level, which would require another 28% in total PC shipments in this latter half of the year to reach a full-year growth rate of 10%. Rasgon thinks it will be more like 6%.
Intel shares today are down 14 cents, or 0.6%, at $22.23.
Twitter facebookYahoo! BuzzStumbleUponDiggfarkredditMySpaceLinkedIndel.icio.us Text Size
By Tiernan Ray
Analysts are tweaking their models for Intel (INTC) in advance of the chip maker's Q2 report on Wednesday afternoon, but also taking a moment to throw more doubts in the way of Intel's relatively rosy outlook for PC growth this year.
JP Morgan's Christopher Danely today cut estimates for Intel for this year, remarking that data points for the PC market "remain weak," but reiterated an Overweight rating on the stock and a $25 price target.
Danely cites among troubling indicators recent remarks from Fairchild Semiconductor (FCS) last week, and from Microchip Technology (MCHP) just before them.He also notes that contract makers of notebook computers in Taiwan expect Q3 shipments to rise just 10% from Q2′s level, which is below normal seasonal patterns for a 15% increase.
Danely cut his 2011 revenue and EPS estimates to $53.1 billion and $2.30 per share, from a prior $54.7 billion and $2.35. He cut his 2012 estimate to $55 billion and $2.32 from a prior $59 billion and $2.15.
Sanford Bernstein's Stacy Rasgon today reiterated a Market Perform rating on Intel shares, while maintaining his outlook for $12.7 billion in revenue for Q2 and EPS of 50 cents, below the $12.82 billion in revenue and 51 cents the Street is modeling. Rasgon writes that he still thinks Intel's forecast of double-digit PC growth in unit terms for the full year is not supported by the data.
Q2 PC growth data, according to recently released Gartner and IDC numbers, were stronger than is typically seasonal, but "likely not nearly enough to drive double digit growth for the year." Units rose 1% in Q2 from Q1′s level, which would require another 28% in total PC shipments in this latter half of the year to reach a full-year growth rate of 10%. Rasgon thinks it will be more like 6%.
Intel shares today are down 14 cents, or 0.6%, at $22.23.
19/7 2011 08:17 le 044142 PREVIEW-Microsoft seals record year, stock still stuck
inShare.0Share thisEmailPrintRelated NewsIBM's services signings surge, stock rises
Mon, Jul 18 2011
Citi profit beats forecasts, challenges remain
Fri, Jul 15 2011
Bernanke halts Wall Street rally; Google soars late
Thu, Jul 14 2011
Google smashes Street expectations, shares surge
Thu, Jul 14 2011
JPMorgan profit rises, loan book grows
Thu, Jul 14 2011Analysis & OpinionTale of two defendants: HTC, Nokia fates diverged in Apple case
How the cloud changed venture capitalism
Related TopicsStocks »
Markets »
Mon Jul 18, 2011 8:38pm EDT
* Tech giant reports quarterly earnings on Thursday
* Wall Street sees 9 pct rise in Q4 earnings
* Analysts see record fiscal year earnings
* PC sales growth faltering, stock stuck in mid-$20s
* Analysts see fiscal Q4 EPS $0.58 vs year ago $0.51
* See Q4 sales $17.2 bln vs year-ago $16 bln
By Bill Rigby
SEATTLE, July 18 (Reuters) - Microsoft Corp (MSFT.O) is set to post a 9 percent jump in fiscal fourth-quarter profit on Thursday, putting the cap on its best financial year ever, but investors are fidgety over flagging computer sales and a gnawing feeling that the tech pioneer will never recapture old growth rates.
The shares of the world's largest software company have risen 10 percent over the past month -- outpacing the tech-heavy NASDAQ -- but still are perched in the mid-$20 range, a level they have circled since 1998, adjusted for splits.
"There's just not enough growth there to make people interested," said Michael Yoshikami, Chief Executive of fund manager YCMNET Advisors. "It's the Johnson & Johnson (JNJ.N) of technology. A large, cash flow-oriented company, but explosive growth has probably passed it by the wayside."
Microsoft's fourth-quarter sales are expected to push annual revenue close to $70 billion for the first time on Thursday, slightly more than Apple Inc's (AAPL.O) last fiscal year. It is also on track for a best-ever $22 billion in net profit for the 2011 fiscal year, according to Thomson Reuters I/B/E/S. Microsoft had net income of $18.76 billion last year year.
But records are not enough for investors, who are more focused on a post-PC future driven by Internet-focused services and mobile gadgets from Apple, Google Inc (GOOG.O) and Facebook.
Analysts expect Apple's revenue to be twice Microsoft's by fiscal 2014, from relative parity now. (For an interactive graphic comparing major tech firms, click on r.reuters.com/nuw62s)
Microsoft's sales grew 12-fold between 1991 and 2000, whereas they grew by only two and a half times between 2001 and 2010.
"We have concerns about Microsoft," said Bruce Ventimiglia, Chief Executive Officer at fund manager Saratoga Capital Management. "As we look at Google and others attacking their business lines, our view over the long run is that it's going to erode margins. Microsoft is not moving as forcefully in the tech space as we'd like to see."
PC SALES WOBBLY
Microsoft's most immediate problem is faltering growth in sales of PCs, which generally come pre-loaded with the Windows operating system and are the surest guide to the company's financial health.
PC sales grew only 2.3 percent in the second quarter of 2011, according to tech research firm Gartner, well below its earlier projection for 6.7 percent growth, as economic uncertainty hangs over consumers and Apple's iPad and other tablets take off.
Microsoft said last week it has now sold more than 400 million Windows licenses since launch in October 2009, up from 350 million three months ago. That suggests 50 million Windows sales in the quarter, about the number it sold the quarter before that.
Windows 7, while still popular with consumers, has already become old news for investors eyeing 'Windows 8' -- the provisional name for the next tablet-friendly operating system expected late next year.
Microsoft has been showing off early prototypes of the new system -- which borrow the look and feel from its mobile platform -- but is not expected to reveal any new details until its annual developer conference in September.
SHAREHOLDER PROTESTS
But some are tired of waiting. In May, outspoken hedge fund manager and long-time Microsoft shareholder David Einhorn called for the removal of Chief Executive Steve Ballmer and a sale of its money-losing online services unit to revive the stock. [ID:nN25183623]
In the last week, a June-dated letter from an anonymous investor to Microsoft's lead independent director has been widely circulated, calling for the company to issue $40 billion of debt to fund a massive share buyback and to direct all its domestic cash flow toward paying dividends.
Microsoft, which has not always had easy relations with investors, has shown no indication it is considering any of these courses of action.
Ballmer and his executives say they are making the right moves -- cutting a deal to put Microsoft software on Nokia (NOK1V.HE) phones, agreeing to buy online video-chat company Skype, making the most of its small investment in Facebook, while hacking away at Google with its Bing search engine.
The company is hoping its efforts will ultimately create a coherent, Internet-compatible whole, spanning operating systems to business software to phones and tablets.
Investors are not buying it so far. The stock now trades at 9.7 times analysts' estimates of earnings for the next 12 months, according to StarMine data, which places greater weight on more accurate analysts. That is around the lowest it has ever been, and lags Apple at 12.6 times and Google at 15.3 times.
"Microsoft certainly has a lot of money and some smart people, but we need to see their investment prowess pay off before we can get excited about it," said Ventimiglia at Saratoga Capital Management.
Analysts expect fiscal fourth quarter earnings per share for Microsoft of 58 cents, up from 51 cents a share in the year ago period. They expect fourth quarter sales of $17.2 bln, up from $16 bln a year ago. (Reporting by Bill Rigby; editing by Carol Bishopric)
inShare.0Share thisEmailPrintRelated NewsIBM's services signings surge, stock rises
Mon, Jul 18 2011
Citi profit beats forecasts, challenges remain
Fri, Jul 15 2011
Bernanke halts Wall Street rally; Google soars late
Thu, Jul 14 2011
Google smashes Street expectations, shares surge
Thu, Jul 14 2011
JPMorgan profit rises, loan book grows
Thu, Jul 14 2011Analysis & OpinionTale of two defendants: HTC, Nokia fates diverged in Apple case
How the cloud changed venture capitalism
Related TopicsStocks »
Markets »
Mon Jul 18, 2011 8:38pm EDT
* Tech giant reports quarterly earnings on Thursday
* Wall Street sees 9 pct rise in Q4 earnings
* Analysts see record fiscal year earnings
* PC sales growth faltering, stock stuck in mid-$20s
* Analysts see fiscal Q4 EPS $0.58 vs year ago $0.51
* See Q4 sales $17.2 bln vs year-ago $16 bln
By Bill Rigby
SEATTLE, July 18 (Reuters) - Microsoft Corp (MSFT.O) is set to post a 9 percent jump in fiscal fourth-quarter profit on Thursday, putting the cap on its best financial year ever, but investors are fidgety over flagging computer sales and a gnawing feeling that the tech pioneer will never recapture old growth rates.
The shares of the world's largest software company have risen 10 percent over the past month -- outpacing the tech-heavy NASDAQ -- but still are perched in the mid-$20 range, a level they have circled since 1998, adjusted for splits.
"There's just not enough growth there to make people interested," said Michael Yoshikami, Chief Executive of fund manager YCMNET Advisors. "It's the Johnson & Johnson (JNJ.N) of technology. A large, cash flow-oriented company, but explosive growth has probably passed it by the wayside."
Microsoft's fourth-quarter sales are expected to push annual revenue close to $70 billion for the first time on Thursday, slightly more than Apple Inc's (AAPL.O) last fiscal year. It is also on track for a best-ever $22 billion in net profit for the 2011 fiscal year, according to Thomson Reuters I/B/E/S. Microsoft had net income of $18.76 billion last year year.
But records are not enough for investors, who are more focused on a post-PC future driven by Internet-focused services and mobile gadgets from Apple, Google Inc (GOOG.O) and Facebook.
Analysts expect Apple's revenue to be twice Microsoft's by fiscal 2014, from relative parity now. (For an interactive graphic comparing major tech firms, click on r.reuters.com/nuw62s)
Microsoft's sales grew 12-fold between 1991 and 2000, whereas they grew by only two and a half times between 2001 and 2010.
"We have concerns about Microsoft," said Bruce Ventimiglia, Chief Executive Officer at fund manager Saratoga Capital Management. "As we look at Google and others attacking their business lines, our view over the long run is that it's going to erode margins. Microsoft is not moving as forcefully in the tech space as we'd like to see."
PC SALES WOBBLY
Microsoft's most immediate problem is faltering growth in sales of PCs, which generally come pre-loaded with the Windows operating system and are the surest guide to the company's financial health.
PC sales grew only 2.3 percent in the second quarter of 2011, according to tech research firm Gartner, well below its earlier projection for 6.7 percent growth, as economic uncertainty hangs over consumers and Apple's iPad and other tablets take off.
Microsoft said last week it has now sold more than 400 million Windows licenses since launch in October 2009, up from 350 million three months ago. That suggests 50 million Windows sales in the quarter, about the number it sold the quarter before that.
Windows 7, while still popular with consumers, has already become old news for investors eyeing 'Windows 8' -- the provisional name for the next tablet-friendly operating system expected late next year.
Microsoft has been showing off early prototypes of the new system -- which borrow the look and feel from its mobile platform -- but is not expected to reveal any new details until its annual developer conference in September.
SHAREHOLDER PROTESTS
But some are tired of waiting. In May, outspoken hedge fund manager and long-time Microsoft shareholder David Einhorn called for the removal of Chief Executive Steve Ballmer and a sale of its money-losing online services unit to revive the stock. [ID:nN25183623]
In the last week, a June-dated letter from an anonymous investor to Microsoft's lead independent director has been widely circulated, calling for the company to issue $40 billion of debt to fund a massive share buyback and to direct all its domestic cash flow toward paying dividends.
Microsoft, which has not always had easy relations with investors, has shown no indication it is considering any of these courses of action.
Ballmer and his executives say they are making the right moves -- cutting a deal to put Microsoft software on Nokia (NOK1V.HE) phones, agreeing to buy online video-chat company Skype, making the most of its small investment in Facebook, while hacking away at Google with its Bing search engine.
The company is hoping its efforts will ultimately create a coherent, Internet-compatible whole, spanning operating systems to business software to phones and tablets.
Investors are not buying it so far. The stock now trades at 9.7 times analysts' estimates of earnings for the next 12 months, according to StarMine data, which places greater weight on more accurate analysts. That is around the lowest it has ever been, and lags Apple at 12.6 times and Google at 15.3 times.
"Microsoft certainly has a lot of money and some smart people, but we need to see their investment prowess pay off before we can get excited about it," said Ventimiglia at Saratoga Capital Management.
Analysts expect fiscal fourth quarter earnings per share for Microsoft of 58 cents, up from 51 cents a share in the year ago period. They expect fourth quarter sales of $17.2 bln, up from $16 bln a year ago. (Reporting by Bill Rigby; editing by Carol Bishopric)
ARM to have big slice of notebook market in 2015, says IHS
19 July 2011]
After more than 30 years of domination by a single microarchitecture - Intel's X86 - the PC microprocessor (MPU) market finally is set for some real competition with shipments of ARM processors set to soar in the coming years and projected to appear in nearly one out of every four notebook PCs made in 2015, according to IHS iSuppli.
Spurred by next year's introduction of Microsoft's new ARM-enabled Windows 8 OS, ARM-based systems will account for 22.9% of global notebook PC unit shipments in 2015, up from 3% in 2012, IHS said. Shipments will reach 74 million ARM notebooks in 2015, compared to 7.6 million in 2012.
"Starting in 1981, when IBM first created its original PC based on Intel's 8088 microprocessor, the X86 architecture has dominated the PC market," said Matthew Wilkins, principal analyst of compute platforms for IHS. "Over the next generation, billions of PCs were shipped based on X86 microprocessors supplied by Intel and assorted rivals - mainly Advanced Micro Devices (AMD). However, the days of X86's unchallenged domination are coming to an end as Windows 8 opens the door for the use of the ARM processor, which already has achieved enormous popularity in the mobile phone and tablet worlds."
To be introduced in 2012, Windows 8 is expected to support ARM-based PC systems in some versions. Microsoft at the Consumer Electronics Show (CES) in January announced that Windows 8 would work with ARM-based system on chip (SoC) designs, whereas the company's flagship OS has supported only standalone X86 microprocessors in the past. ARM support will enable the full-fledged Windows PC OS to work on highly integrated chips that are more space- and power-efficient than traditional X86 microprocessors, such as the ARM devices used in smartphones and media tablets.
ARM during the next few years is expected to achieve its biggest successes in the Value notebook segment, IHS believes. Typically priced at less than US$700, Value notebooks are designed to deliver the optimal price/performance to consumers. A category that includes netbooks, Value notebooks most frequently employ AMD's E Series and Intel's Celeron M and Atom microprocessors.
"ARM is well-suited for Value notebooks, where performance isn't a key criterion for buyers," Wilkins said. "Value notebook buyers are looking for basic systems that balance an affordable price with reasonable performance. ARM processors deliver acceptable performance at a very low cost, along with unrivaled power efficiency."
The proliferation of ARM-based notebooks is expected to provide growth opportunities for a raft of existing as well as new suppliers of the chip, including Nvidia, Qualcomm and Texas Instruments (TI).
However, Intel and AMD are not expected to cede a portion of their market without a fight, IHS said. For example, Intel is developing its tri-gate 3D transistor technology, which allows X86 microprocessors to cut their power consumption in half while still delivering the same level of performance. This potentially will help Intel to maintain its position in PC processors, but also may allow it to expand its X86 business into tablets and cellphones. Likewise, AMD has been working to reduce power consumption for its X86 devices.
19 July 2011]
After more than 30 years of domination by a single microarchitecture - Intel's X86 - the PC microprocessor (MPU) market finally is set for some real competition with shipments of ARM processors set to soar in the coming years and projected to appear in nearly one out of every four notebook PCs made in 2015, according to IHS iSuppli.
Spurred by next year's introduction of Microsoft's new ARM-enabled Windows 8 OS, ARM-based systems will account for 22.9% of global notebook PC unit shipments in 2015, up from 3% in 2012, IHS said. Shipments will reach 74 million ARM notebooks in 2015, compared to 7.6 million in 2012.
"Starting in 1981, when IBM first created its original PC based on Intel's 8088 microprocessor, the X86 architecture has dominated the PC market," said Matthew Wilkins, principal analyst of compute platforms for IHS. "Over the next generation, billions of PCs were shipped based on X86 microprocessors supplied by Intel and assorted rivals - mainly Advanced Micro Devices (AMD). However, the days of X86's unchallenged domination are coming to an end as Windows 8 opens the door for the use of the ARM processor, which already has achieved enormous popularity in the mobile phone and tablet worlds."
To be introduced in 2012, Windows 8 is expected to support ARM-based PC systems in some versions. Microsoft at the Consumer Electronics Show (CES) in January announced that Windows 8 would work with ARM-based system on chip (SoC) designs, whereas the company's flagship OS has supported only standalone X86 microprocessors in the past. ARM support will enable the full-fledged Windows PC OS to work on highly integrated chips that are more space- and power-efficient than traditional X86 microprocessors, such as the ARM devices used in smartphones and media tablets.
ARM during the next few years is expected to achieve its biggest successes in the Value notebook segment, IHS believes. Typically priced at less than US$700, Value notebooks are designed to deliver the optimal price/performance to consumers. A category that includes netbooks, Value notebooks most frequently employ AMD's E Series and Intel's Celeron M and Atom microprocessors.
"ARM is well-suited for Value notebooks, where performance isn't a key criterion for buyers," Wilkins said. "Value notebook buyers are looking for basic systems that balance an affordable price with reasonable performance. ARM processors deliver acceptable performance at a very low cost, along with unrivaled power efficiency."
The proliferation of ARM-based notebooks is expected to provide growth opportunities for a raft of existing as well as new suppliers of the chip, including Nvidia, Qualcomm and Texas Instruments (TI).
However, Intel and AMD are not expected to cede a portion of their market without a fight, IHS said. For example, Intel is developing its tri-gate 3D transistor technology, which allows X86 microprocessors to cut their power consumption in half while still delivering the same level of performance. This potentially will help Intel to maintain its position in PC processors, but also may allow it to expand its X86 business into tablets and cellphones. Likewise, AMD has been working to reduce power consumption for its X86 devices.
19/7 2011 18:38 vouskootia 144167 Nogen der husker Microsoft's historik med at koere Windows paa andre arkitekturere?
http://en.wikipedia.org/wiki/Windows_NT#Supported_platforms
Microsofts Windows paa andre arkitekturere so far er med native Windows, og derefter at alle programmer skal recompileres fra producenternes side til arkitekturen (og MS opgav at compilere bla. Office til andet end x86 platformen).
Windows CE og Windows mobile har ogsaa suffered fra dette med at man skulle compile til cpu platformen mobilen koerte paa... (I windows phone 7 har de dog laert det og kraever nu at apps skal vaere i Silverligt eller XNA - en slags virtuel maskine - lige som Android med deres Dalvik virtuel maskine).
Hvordan faar Microsoft forklaret forbrugerene at Windows 8 (ARM) - ikke kan koere normale Windows programmer? (eller vil de emulere x86 paa ARM og suffer med performance?) Eller maaske de har andre tricks? (eller er Windows paa ARM blot vaporware for at vinde tid?
Jeg tror Windows platformen bliver fragmented og crippled med dette move....
Hvis vi nu antager at fremtidige forbrugerene bliver flasket op med Iphone og Android som deres foerste 'computer' device i livet - hvilket OS og programmer vil de saa bruge paa desktop/laptop/tablet computer fremover?
Faerre og faerre systemer bliver heldigvis bundet op til MS - men istedet til cloud/web - og dermed platforms uafhaengigt. (haaber snart at hoere om en skole-klasse der brokker sig over at skulle tvinges til at bruge MS Office til eksamen og ikke xyz online office produkt)
http://en.wikipedia.org/wiki/Windows_NT#Supported_platforms
Microsofts Windows paa andre arkitekturere so far er med native Windows, og derefter at alle programmer skal recompileres fra producenternes side til arkitekturen (og MS opgav at compilere bla. Office til andet end x86 platformen).
Windows CE og Windows mobile har ogsaa suffered fra dette med at man skulle compile til cpu platformen mobilen koerte paa... (I windows phone 7 har de dog laert det og kraever nu at apps skal vaere i Silverligt eller XNA - en slags virtuel maskine - lige som Android med deres Dalvik virtuel maskine).
Hvordan faar Microsoft forklaret forbrugerene at Windows 8 (ARM) - ikke kan koere normale Windows programmer? (eller vil de emulere x86 paa ARM og suffer med performance?) Eller maaske de har andre tricks? (eller er Windows paa ARM blot vaporware for at vinde tid?
Jeg tror Windows platformen bliver fragmented og crippled med dette move....
Hvis vi nu antager at fremtidige forbrugerene bliver flasket op med Iphone og Android som deres foerste 'computer' device i livet - hvilket OS og programmer vil de saa bruge paa desktop/laptop/tablet computer fremover?
Faerre og faerre systemer bliver heldigvis bundet op til MS - men istedet til cloud/web - og dermed platforms uafhaengigt. (haaber snart at hoere om en skole-klasse der brokker sig over at skulle tvinges til at bruge MS Office til eksamen og ikke xyz online office produkt)
Mens vi varmer op. Intel kommer indenfor et par timer. Her er selskabets egne forventninger til kvartalet.
Q2 2011 (GAAP, unless otherwise stated)
Revenue: $12.8 billion, plus or minus $500 million. Non-GAAP revenue: Excluding certain acquisition related accounting impacts, the revenue
forecast is $12.85 billion, plus or minus $500 million. Gross Margin percentage: 61 percent, plus or minus a couple percentage points. Non-GAAP gross Margin: Excluding certain accounting impacts and expenses related to
acquisitions, the gross Margin forecast is 62 percent plus or minus a couple percentage points. R&D plus MG&A spending: approximately $3.9 billion. Amortization of acquisition related intangibles: approximately $75 million. Impact of equity investments and interest and other: gain of approximately $50 million. Depreciation: approximately $1.2 billion.
Q2 2011 (GAAP, unless otherwise stated)
Revenue: $12.8 billion, plus or minus $500 million. Non-GAAP revenue: Excluding certain acquisition related accounting impacts, the revenue
forecast is $12.85 billion, plus or minus $500 million. Gross Margin percentage: 61 percent, plus or minus a couple percentage points. Non-GAAP gross Margin: Excluding certain accounting impacts and expenses related to
acquisitions, the gross Margin forecast is 62 percent plus or minus a couple percentage points. R&D plus MG&A spending: approximately $3.9 billion. Amortization of acquisition related intangibles: approximately $75 million. Impact of equity investments and interest and other: gain of approximately $50 million. Depreciation: approximately $1.2 billion.
20/7 2011 21:26 144198 De leverede en rekord igen. 5. kvartal i træk.
Non GAAP Results
Revenue: A record $13.1 billion, up $2.3 billion, 22 percent year-over-year
Gross Margin: 62 percent, down 5.5 percentage points year-over-year
Operating income: $4.2 billion, up $221 million, 6 percent year-over-year
Net income: $3.2 billion, up $290 million, 10 percent year-over-year
EPS: 59 cents, up 8 cents, 16 percent year-over-year
GAAP Results
Revenue: A record $13.0 billion, up $2.3 billion, 21 percent year-over-year
Gross Margin: 61 percent, down 6.6 percentage points year-over-year
Operating income: $3.9 billion, down $46 million, 1 percent year-over-year
Net income: $3.0 billion, up $67 million, 2 percent year-over-year
EPS: 54 cents, up 3 cents, 6 percent year-over-year
SANTA CLARA, Calif., July 20, 2011 - Intel Corporation today reported its fifth consecutive quarter of record revenue, with double-digit revenue growth across all business segments.
On a Non-GAAP basis, revenue was $13.1 billion, operating income was $4.2 billion, net income was $3.2 billion, and EPS was 59 cents. 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.
The company generated approximately $4.0 billion in cash from operations, paid cash dividends of $961 million, and used $2.0 billion to repurchase 93 million shares of common stock.
"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."
Non-GAAP Financial Comparison
Quarterly Results
Q2 2011 vs.
Q1 2010 vs.
Q2 2010
Revenue $13.1 billion up 2% up 22%
Operating Income $4.2 billion down 2% up 6%
Net Income $3.2 billion down 3% up 10%
Earnings Per Share 59 cents flat up 16%
Non GAAP Results
Revenue: A record $13.1 billion, up $2.3 billion, 22 percent year-over-year
Gross Margin: 62 percent, down 5.5 percentage points year-over-year
Operating income: $4.2 billion, up $221 million, 6 percent year-over-year
Net income: $3.2 billion, up $290 million, 10 percent year-over-year
EPS: 59 cents, up 8 cents, 16 percent year-over-year
GAAP Results
Revenue: A record $13.0 billion, up $2.3 billion, 21 percent year-over-year
Gross Margin: 61 percent, down 6.6 percentage points year-over-year
Operating income: $3.9 billion, down $46 million, 1 percent year-over-year
Net income: $3.0 billion, up $67 million, 2 percent year-over-year
EPS: 54 cents, up 3 cents, 6 percent year-over-year
SANTA CLARA, Calif., July 20, 2011 - Intel Corporation today reported its fifth consecutive quarter of record revenue, with double-digit revenue growth across all business segments.
On a Non-GAAP basis, revenue was $13.1 billion, operating income was $4.2 billion, net income was $3.2 billion, and EPS was 59 cents. 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.
The company generated approximately $4.0 billion in cash from operations, paid cash dividends of $961 million, and used $2.0 billion to repurchase 93 million shares of common stock.
"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."
Non-GAAP Financial Comparison
Quarterly Results
Q2 2011 vs.
Q1 2010 vs.
Q2 2010
Revenue $13.1 billion up 2% up 22%
Operating Income $4.2 billion down 2% up 6%
Net Income $3.2 billion down 3% up 10%
Earnings Per Share 59 cents flat up 16%
men husk at der er dollar indvirkning på revenue, så vi er ikke i drømmeland. Men solidt.
En del overraskelser i forhold til hvad vi har talt om.
Vækst i PC segmentet blandt andet
Q2 2011 Key Financial Information (GAAP)
Business unit trends:
PC Client Group revenue up 11 percent year-over-year.
Data Center Group revenue up 15 percent year-over-year.
Other Intel architecture group revenue up 84 percent year-over-year, including Embedded & Communications Group revenue up 25 percent year-over-year.
Intel® Atom™ microprocessor and chipset revenue of $352 million, down 15 percent year-over-year.
The acquisitions of McAfee Inc. and Infineon Wireless Solutions (now Intel Mobile Communications) contributed revenue of $1.0 billion in their first full-quarter of results.
The platform average selling price (ASP) was approximately flat sequentially and up year-over-year.
Gross Margin was 61 percent, consistent with the company's expectation.
R&D plus MG&A spending was $3.9 billion, consistent with the company's expectation.
Net loss of $4 million from equity investments and interest and other, versus the company's expectation of a $50 million net gain.
The effective tax rate was 25 percent, below the company's expectation of 29 percent.
The company used $2.0 billion to repurchase 93 million shares of common stock.
The second quarter of 2011 had 13 weeks of business, while the first quarter of 2011 had 14 weeks.
Vækst i PC segmentet blandt andet
Q2 2011 Key Financial Information (GAAP)
Business unit trends:
PC Client Group revenue up 11 percent year-over-year.
Data Center Group revenue up 15 percent year-over-year.
Other Intel architecture group revenue up 84 percent year-over-year, including Embedded & Communications Group revenue up 25 percent year-over-year.
Intel® Atom™ microprocessor and chipset revenue of $352 million, down 15 percent year-over-year.
The acquisitions of McAfee Inc. and Infineon Wireless Solutions (now Intel Mobile Communications) contributed revenue of $1.0 billion in their first full-quarter of results.
The platform average selling price (ASP) was approximately flat sequentially and up year-over-year.
Gross Margin was 61 percent, consistent with the company's expectation.
R&D plus MG&A spending was $3.9 billion, consistent with the company's expectation.
Net loss of $4 million from equity investments and interest and other, versus the company's expectation of a $50 million net gain.
The effective tax rate was 25 percent, below the company's expectation of 29 percent.
The company used $2.0 billion to repurchase 93 million shares of common stock.
The second quarter of 2011 had 13 weeks of business, while the first quarter of 2011 had 14 weeks.
20/7 2011 22:34 le 044201 ja det er bedre end det jeg forventede, så det tegner godt for en opgang i teknologiaktierne i 2h især efter september/oktober
21/7 2011 07:51 le 044203 Intel backs off PC market outlook, shares slide
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The Intel logo is advertised on the side of a computer box at an electronic store in Phoenix, Arizona November 4, 2009.REUTERS/Joshua Lott
On Wednesday July 20, 2011, 8:19 pm EDT
By Noel Randewich
SAN FRANCISCO (Reuters) - Intel Corp trimmed its forecast for 2011 personal computer unit sales, warning of softness in mature markets and sending its shares down more than 1 percent even as its revenue outlook beat estimates.
The top maker of microprocessors for PCs now expects 8 to 10 percent growth in unit shipments of computers this year, down from the low double-digits it had stuck to earlier in defiance of fears that market momentum was decelerating.
Intel's processors are used in 80 percent of the world's PCs, but mobile devices from Apple Inc's iPad to Google Inc Android smartphones are eating into laptop sales and Intel is struggling to gain a foothold in the fast-expanding mobile market.
Its Atom division, which caters to a mobile computing market, saw revenue slide 15 percent to $352 million.
"The mature market consumer segment is still soft, but the emerging-market consumer segment is healthy and growing," CEO Paul Otellini told analysts on a conference call.
Intel's tepid PC forecast and concerns about the economy overshadowed a solid quarter for the chip giant, with quarterly results and revenue forecast both trumping Wall Street's expectations.
The Santa Clara, California expects average selling prices for its chips to increase as families in China and other emerging markets that buying their first ever-computers choose fairly high-quality PCs that are built to last.
Intel's upbeat results followed positive quarterly earnings from Apple and International Business Machines Corp earlier this week.
But doubts about high U.S. unemployment, the risk of a European financial crisis, climbing inventories and sluggish PC sales weighed on sentiment -- and share prices -- of Intel and other chip makers.
Mobile chipmaker Qualcomm raised its quarterly outlook on Wednesday but investors jumpy about the economy sent its shares 3 percent lower after hours. (nN1E76J250) Also, Xilinx and Freescale saw their shares fall despite beating estimates.
"It does happen that semiconductor companies are further back in the supply chain and they don't see the end-user demand. They just see the orders coming from their customers and sometimes they can be surprised," said Stifel Nicolaus analyst Kevin Cassidy.
INSISTENCE
Intel's gains in the second quarter were driven by the PC group, its largest segment, and the data center group, which has been expanding quickly in part because of cloud computing.
Chief Executive Paul Otellini said he is confident tablets will not replace small laptop computers, even after Apple's blockbuster iPad sales in the second quarter.
He said Intel, which has failed so far to gain traction in mobile gadgets, will be "hyper competitive" winning space for its processors in tablets using an upcoming version of Microsoft's Windows operating system.
The company foresaw current-quarter revenue of about $14 billion, give or take $500 million, versus the $13.5 billion analysts expect on average.
"When we look across the broader worldwide supply chain for PCs and servers, what we see are inventory levels that are lean out there. People are managing things lean, they're prudent," Intel Chief Financial Officer Stacy Smith told Reuters.
Investors eyeing slow economies and red-hot sales of the iPad in recent months have insisted Intel's outlook for PC growth is overly optimistic. Analysts had warned that Intel at some point may be forced to trim its estimate.
"Take a look at the headlines over the past couple of months, in terms of the global economic malaise. It's hard to have any confidence in how they are going to deliver 7 percent growth sequentially," said Evercore Partners analyst Patrick Wang.
Analysts on average had expected Intel's revenue to rise to $13.5 billion in the current quarter, according to Thomson Reuters I/B/E/S, less than normal growth for this time of year.
Revenue in the June quarter was $13.1 billion, up 22 percent over the year-ago period and above the $12.8 billion expected by analysts, according to Thomson Reuters I/B/E/S.
Non-GAAP net income in the quarter was $3.2 billion, up 10 percent. Non-GAAP earnings per share were 59 cents, beating expectations of 51 cents.
Shares of Intel dipped 1.78 percent to $22.58 in extended trade after closing down 0.3 percent.
tweet0EmailPrintTopics:Earnings
The Intel logo is advertised on the side of a computer box at an electronic store in Phoenix, Arizona November 4, 2009.REUTERS/Joshua Lott
On Wednesday July 20, 2011, 8:19 pm EDT
By Noel Randewich
SAN FRANCISCO (Reuters) - Intel Corp trimmed its forecast for 2011 personal computer unit sales, warning of softness in mature markets and sending its shares down more than 1 percent even as its revenue outlook beat estimates.
The top maker of microprocessors for PCs now expects 8 to 10 percent growth in unit shipments of computers this year, down from the low double-digits it had stuck to earlier in defiance of fears that market momentum was decelerating.
Intel's processors are used in 80 percent of the world's PCs, but mobile devices from Apple Inc's iPad to Google Inc Android smartphones are eating into laptop sales and Intel is struggling to gain a foothold in the fast-expanding mobile market.
Its Atom division, which caters to a mobile computing market, saw revenue slide 15 percent to $352 million.
"The mature market consumer segment is still soft, but the emerging-market consumer segment is healthy and growing," CEO Paul Otellini told analysts on a conference call.
Intel's tepid PC forecast and concerns about the economy overshadowed a solid quarter for the chip giant, with quarterly results and revenue forecast both trumping Wall Street's expectations.
The Santa Clara, California expects average selling prices for its chips to increase as families in China and other emerging markets that buying their first ever-computers choose fairly high-quality PCs that are built to last.
Intel's upbeat results followed positive quarterly earnings from Apple and International Business Machines Corp earlier this week.
But doubts about high U.S. unemployment, the risk of a European financial crisis, climbing inventories and sluggish PC sales weighed on sentiment -- and share prices -- of Intel and other chip makers.
Mobile chipmaker Qualcomm raised its quarterly outlook on Wednesday but investors jumpy about the economy sent its shares 3 percent lower after hours. (nN1E76J250) Also, Xilinx and Freescale saw their shares fall despite beating estimates.
"It does happen that semiconductor companies are further back in the supply chain and they don't see the end-user demand. They just see the orders coming from their customers and sometimes they can be surprised," said Stifel Nicolaus analyst Kevin Cassidy.
INSISTENCE
Intel's gains in the second quarter were driven by the PC group, its largest segment, and the data center group, which has been expanding quickly in part because of cloud computing.
Chief Executive Paul Otellini said he is confident tablets will not replace small laptop computers, even after Apple's blockbuster iPad sales in the second quarter.
He said Intel, which has failed so far to gain traction in mobile gadgets, will be "hyper competitive" winning space for its processors in tablets using an upcoming version of Microsoft's Windows operating system.
The company foresaw current-quarter revenue of about $14 billion, give or take $500 million, versus the $13.5 billion analysts expect on average.
"When we look across the broader worldwide supply chain for PCs and servers, what we see are inventory levels that are lean out there. People are managing things lean, they're prudent," Intel Chief Financial Officer Stacy Smith told Reuters.
Investors eyeing slow economies and red-hot sales of the iPad in recent months have insisted Intel's outlook for PC growth is overly optimistic. Analysts had warned that Intel at some point may be forced to trim its estimate.
"Take a look at the headlines over the past couple of months, in terms of the global economic malaise. It's hard to have any confidence in how they are going to deliver 7 percent growth sequentially," said Evercore Partners analyst Patrick Wang.
Analysts on average had expected Intel's revenue to rise to $13.5 billion in the current quarter, according to Thomson Reuters I/B/E/S, less than normal growth for this time of year.
Revenue in the June quarter was $13.1 billion, up 22 percent over the year-ago period and above the $12.8 billion expected by analysts, according to Thomson Reuters I/B/E/S.
Non-GAAP net income in the quarter was $3.2 billion, up 10 percent. Non-GAAP earnings per share were 59 cents, beating expectations of 51 cents.
Shares of Intel dipped 1.78 percent to $22.58 in extended trade after closing down 0.3 percent.
