Intel has announced huge second-quarter financial results with both the company's revenue and unit shipments of its microprocessors and flash memory setting new records.
For the second quarter of fiscal 2000, which closed July 1, Intel recorded revenue of $US8.3 billion, a new company record, up 23 per cent from the year-ago quarter. Excluding acquisition-related costs, net income was $3.5 billion and earnings per share were 50 cents, increases of 98 and 92 per cent respectively on the second quarter of fiscal 1999.
"We are very pleased with our record quarterly results in what is normally a seasonally slow quarter," Intel chief executive officer and president Craig Barrett said. "We saw strong demand in all business groups, especially for microprocessors, flash memory and networking silicon." He added that he expects strong demand for Intel's products to continue into the second half of this year. Revenue for Intel's third quarter will be above this quarter's $8.3 billion mark, according to the company.
Factoring in the acquisition-related costs in the order of $415 million, net income was $3.1 billion and earnings per share were 45 cents. Intel noted that all share and per share amounts have been adjusted to reflect the company's two-for-one stock split, which is payable to Intel shareholders July 30.
A group of 20 brokers polled by First Call/Thomson Financial on July 13 estimated that Intel would record earnings per share of 99 cents for the second quarter of fiscal 2000, up from 51 cents for the year ago period. The First Call estimate did not reflect the stock split. Intel said the pre-split earnings per share excluding acquisition-related costs were $1, while earnings per share including the costs were 90 cents.
Second-quarter net income and earnings per share include Intel's previously announced charge of around $200 million to cover the remaining costs of a program to fix faulty PC motherboards based around the company's 820 chip set.
The chip set's memory translator hub, which translates signals from synchronous dynamic random access memory to the 820 chip set, was faulty, potentially causing systems to fail or data to be corrupted.
Intel also announced that it will shortly start shipping its Itanium processor for use in end-user pilot installations. The company added that it now expects to begin recording revenue from Itanium in the fourth quarter of this year, not the third.