Intel earnings: Otellini says "Industry is nearly fully recovered"
Intel’s first quarter results were as strong as advertised as the company delivered revenue down just a smidge from the fourth quarter tally. Typically, there’s a seasonal drop off in sales.
The company reported net income of $2.4 billion, or 42 cents a share, on revenue of $10.3 billion, up 44 percent from a year ago and off a mere 3 percent from the fourth quarter. Wall Street was expecting earnings of 38 cents a share on revenue of $9.84 billion. Gross margins for the fourth quarter were 63.4 percent.
Intel raised its outlook for the second quarter (statement, preview). Intel is projecting revenue of $10.2 billion, give or take $400 million, with gross margins of 64 percent or so. Wall Street was expecting $9.7 billion. For 2010, Intel said it will deliver gross margins of 64 percent or so, up from its previous estimate of 61 percent. The company will spend $6.4 billion on research and development and capital spending will come in about $4.8 billion.
