Intel narrowly missed analyst estimates for its second-quarter revenue, but increased revenue by 18 percent compared to last year's second quarter on a strong increase in flash memory shipments and expressed confidence about its prospects in the third quarter, the company said in a press release Tuesday.
The company recorded US$8.05 billion in revenue during the second quarter, the period ending June 26. This compared to revenue of US$6.8 billion from last year's second quarter. Second-quarter 2004 net income was US$1.8 billion [b], up 96 percent from the second quarter of a year ago.
Analysts polled by Thomson First Call had expected Intel to record US$8.1 billion in revenue, the midpoint of an updated range that Intel provided in June. Intel's second-quarter earnings per share of US$0.27 were in line with analyst estimates.
The second quarter of the year is considered the worst period for PC sales, and historically chip companies have seen their revenue decline from the first quarter to the second quarter. Intel's revenue was flat compared with the first quarter as chipset, motherboard and flash memory unit sales all increased sequentially while shipments of Intel Architecture products such as the Pentium 4 and the Pentium M were lower in the second quarter than in the first quarter, following the usual seasonal trends.
Intel expects to record between US$8.6 billion and US$9.2 billion in the third quarter, it said in the release.
Several financial analyst firms, such as Merrill Lynch & Co and Lehman Brothers Holdings, expressed caution about the near-term strength of the PC market this week on fears that Intel would provide a cautious outlook for the third quarter. But the midpoint of Intel's third-quarter guidance is US$8.9 billion, higher than Lehman's revised third-quarter estimate of US$8.6 billion in revenue and its original estimate of US$8.75 billion.