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Intel posts strong Q1 earnings
Profits jump 288% year-on-year
Chipmaker Intel has posted its Q1 earnings report and the numbers were impressive to say the least.
The company reported $10.3 billion in revenues, a record for Q1. It noted that it saw strong demand for mobile chips and that there were signs companies were starting to reinvest in their IT infrastructure. Compared to Q1 2009, revenues were up 44 percent. As if revenues weren't impressive enough, the profit jump was nothing short of spectacular. The company reported $2.4 billion in profits for Q1, a 288 percent increase year-on-year.
Intel CEO Paul Otellini announced that the tech industry is nearing full recovery and that demand is continuing to grow at a steady pace. Otellini also noted that corporate spending was improving.
“You’re getting to the point where, as CEOs start feeling better [about the economy], it makes sense to swap [the older systems] out,” said Otellini.
Intel CFO Stacy Smith pointed out that demand for Intel's new 32-nm processors was increasing, as well as the yields in Intel's 32nm manufacturing plants. Smith claims high demand prompted Intel to speed up its plans to bring two new 32nm plants online.
Intel expects growth to continue in the second quarter and it is predicting revenues in the $9.8 billion to $10.6 billion range.