Intel on target; Revenue light

Summary:If Intel is expecting a big bump from Vista--or AMD's miscues--it isn't showing it. Intel reported first quarter earnings of 22 cents a share, excluding a 5 cent tax gain.

If Intel is expecting a big bump from Vista--or AMD's miscues--it isn't showing it.

Intel reported first quarter earnings of 22 cents a share, excluding a 5 cent tax gain. Revenue of $8.85 billion. According to Thomson Financial, Intel's results met Wall Street estimates, but revenue was expected to be $8.99 billion.

Intel, which is holding court at its Intel Developer's Forum in Beijing, projected revenue to be $8.2 billion to $8.8 billion for the second quarter. Wall Street was expecting sales of $8.86 billion.

CEO Paul Otellini said in a statement that "average selling prices for the quarter held up well in a very competitive environment."

Among key figures:

  • Total microprocessor units were lower compared to the fourth quarter.
  • Chipset, motherboard and flash memory units were lower compared to the fourth quarter.
  • R&D spending for 2007 is projected to be $5.6 billion, up from the previous expectation of $5.4 billion.
  • The digital enterprise group had revenue of $4.75 billion and an operating profit of $931 million.
  • The mobility group had revenue of $3.3 billion and operating income of $1.38 billion.

Topics: Intel

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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