Intel Corp First-quarter earnings report april 17 2012, GAAP net income , GAAP earnings per share, intel shares prices outlook april 18 2012 ,: First-quarter earnings at Intel Corp. fell 13 percent as spending on research and marketing rose while sales were flat, the world's largest chipmaker said Tuesday.The results beat analyst expectations, but failed to sustain Intel's stock, which hit a seven-year high of $28.78 in regular trading. In extended trading, after the release of the results, the shares fell 68 cents, or 2.4 percent from the close to $27.79.
In a first-quarter earnings report that did not inspire investors to push Intel's recently high-flying stock further, the company also said costs associated with ramping up new production lines would hurt gross margins more than expected.
Intel said non-GAAP gross margins in the second quarter would be 62 percent, plus or minus 2 percentage points, down from 64 percent in the first quarter. Intel's full-year gross margin forecast of 64 percent was unchanged.
Intel bought computer security company McAfee Inc. and a unit of Infineon AG last year, but the added revenue from those deals was offset by the fact that this year's quarter was one week shorter than last year's.
The first quarter saw the launch of a new generation of chips for server computers, but more important developments lie ahead, accounting for some of the increase in expenses.
Intel is set to launch new PC chips soon, and the first smartphone with an Intel chip is also on tap this week from an unnamed manufacturer.
Intel is also going to ramp up its largest marketing campaign in many years, to support "ultrabooks," which are thin, light laptops in the vein of Apple's Macbook Air. All the large PC makers have responded to Intel's promptings to make such laptops.
Intel is dominant in the market for PC processors, supplying the main computing chip for four out of five PCs sold in the world. But it's facing a new challenge in the form of cheap phone-style chips, which have graduated from smartphones to powering tablet computers such as the iPad. There are signs that tablet sales are cutting into PC sales, at least in the U.S.
On a call with analysts Tuesday, CEO Paul Otellini said ultrabooks combine the attractive features of a tablet, like thinness, touch screens and instant start-up, with the keyboard and convenience of a PC. A number of ultrabooks that unite those features will be hitting stores in the holiday season, he said.
In the long term, the future of the PC is probably something in between the tablet and the laptop, he said. Microsoft Corp. is launching a new touch-oriented version of Windows late this year, meshing with Otellini's vision. But it will also support non-Intel, phone-style chips - a first for Windows.
Intel said revenue in the current quarter would be $13.6 billion (8.5 billion pounds), plus or minus $500 million. Analysts on average had expected $13.45 billion, according to Thomson Reuters I/B/E/S.
The world's leading chipmaker said revenue in the first quarter was $12.9 billion, up from $12.85 billion in the year-ago period and a bit higher than the $12.85 billion expected.
GAAP net income in the first quarter was $2.74 billion, down from $3.16 billion in the year-ago period.
GAAP earnings per share were 53 cents, better than the 50 cents expected. Shares of Intel fell 2.81 percent in extended trade after closing up 0.23 percent at $28.47 on Nasdaq.
The Santa Clara, California, company said it expects $13.1 billion to $14.1 billion in second-quarter revenue, with a midpoint of $13.6 billion, above the analyst forecast of $13.4 billion.
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment