Intel posts record quarter
- 15 October, 1998 13:20
Intel this week reported its highest quarterly revenues ever, but said net profits for the third quarter were essentially flat year over year.
The chip giant said revenue of $US6.7 billion for the third quarter ending September 26 was up 9 per cent from third quarter 1997 revenue of $US6.2 billion and up 14 per cent from second-quarter 1998 revenue of $US5.9 billion.
The revenue increase was driven by strong worldwide demand for PC products and allowed the company to post record unit shipments of microprocessors. However, demand was strong across Intel's entire product portfolio, officials claimed. Intel's net income in the third quarter was essentially flat with the third quarter of 1997, at $US1.6 billion.
Looking ahead, Intel expects revenue for the fourth quarter of 1998 to be up slightly from third-quarter revenue of $US6.7 billion, and consistent with the company's earlier expectations, Intel's revenue in the second half of this year is expected to be greater than in the first half.
Since the end of the first quarter, Intel has reduced its headcount by approximately 2000 people, excluding about 1800 people which were added as a result of the acquisition of Digital's semiconductor manufacturing operations. Intel is on track to complete the reduction of approximately 3000 employees by the end of the year, executives said.
While Japan continues to be the dark spot on the map, Intel's revenues in the period grew across all major geographical regions, executives said.
In the third quarter, 47 per cent of total revenue was generated in the Americas, down 1 per cent from the year ago quarter; 26 per cent in Europe, up 2 per cent; and 20 per cent in Asia-Pacific, up by 1 per cent compared to the same period last year.