Intel Reports Increased Net Income, Foresees Slow Growth in Third Quarter

From DailyTech: Leading chip maker Intel reported increased revenue and net income in its second-quarter earnings today, but predicts slowed growth in the forthcoming third quarter.

According to Intel's earnings report, the company's net income increased 3 percent to $2.8 billion (54 cents a share) and revenue rose 5 percent to $13.5 billion from $13.03 billion this time last year. This was great news for Wall Street, which previously estimated a net income of 52 cents a share and revenue around the $13.54 to $13.56 billion mark.

The gross margins, on the other hand, fell slightly from 64 percent to 63.4 percent. The hit likely comes from increased revenues.

Looking ahead, Intel predicts a revenue of $14.3 billion (plus or minus $500 million) for Q3 2012. Analysts expected somewhere in the realm of $14.60 billion.

"The second quarter was highlighted by solid execution with continued strength in the data center and multiple product introductions in Ultrabooks and smartphones," said Paul Otellini, Intel president and CEO. "As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment. With a rich mix of Ultrabook and Intel-based tablet and phone introductions in the second half, combined with the long-term investments we're making in our product and manufacturing areas, we are well positioned for this year and beyond."

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