Laptop chip sales power Intel’s third quarter profits |
|
|
Published
:
Wed, 19 Oct 2005 21:05
|
SAN FRANCISCO - The world's largest computer-chip maker Intel Corp reported today that third-quarter profits at the company increased by 5 percent helped largely by the spiraling demand for Intel chips that run laptop computers.
But despite this announcement, Intel shares dropped as the earnings were below Wall Street estimates. Net income for the period ending October 1 stood at $2 billion, or 32 cents a share, as against the $1.9 billion, or 30 cents a share, reported at the same time last year.
However, the positive note did nothing for the shares since analysts surveyed by Thomson First Call had predicted revenues of 33 cents. However the revenue targets exceeded the Wall Street estimates of $9.92 billion and registered $9.96 billion. The Santa Clara, Calif.-based Company said that the sales of the laptop chips are soaring and was responsible for the surge in revenues.
Laptop-chip sales increased by 48 percent in the third quarter to $2.3 billion, while sales of the chips that power desktops and corporate servers rose 9.2 percent to $4.9 billion. Intel has more than 80 percent of the market share in the PC-chip segment. "We achieved all-time records in company revenue and unit shipments all across our major product lines," said Intel chief executive Paul Otellini in a statement.
He refused to be cowered by Wall Street estimates and said that the company had put in a solid performance in the third quarter. Intel was also bullish on fourth-quarter predictions and said that it expected revenues between $10.2 billion and $10.8 billion.
Despite this outlook Intel shares dropped more than 3 percent in after-hours trading and dipped by 77 cents. This was after gaining 26 cents to $23.72 in the morning session in anticipation of the third-quarter report.
|
|
|
|
|
|
Print this Story
Wedding of the year: Apple-Intel tie-up 