Intel (INTC) this afternoon posted slightly better than expected results for the third quarter, reporting revenue of $11.1 billion and profits of 52 cents a share, ahead of the consensus at $11 billion and 50 cents.
CEO Paul Otellini noted in a statement that the company set all-time record for revenue and operating income. (Operating income in the quarter was $4.1 billion.) It was the first quarter ever in which Intel broke $11 billion in revenue. “These results were driven by solid demand from corporate customers, sales of our leadership products and continued growth in emerging market,” he said.
PC client group revenue was up 3% from Q2, while data center revenue was up 3%. Atom processor revenue was down 4% sequentially. Gross margin of 66% was in the middle of the forecast range of 65%-67%. Expenses were in line with expectations. The company had an effective tax rate of 30.5%, below the forecast level of 32%. But the company also said gains from equity investments and interest and other income was $115 million, lower than the $175 million the company had forecast.
At quarter end, the company had just under $15 billion in cash and short term investments, up from $12.2 billion one quarter earlier, and $9.3 billion a year ago. Total cash, including marketable debt securities, rose to $20.3 billion, from $17.8 billion at the end of Q2, and $12.9 billion a year ago.
The company did not buy back stock in the latest quarter.
Headcount increased to 81,700 at quarter end, up 1,300 from 80,400 one quarter earlier.
For Q4, the company sees revenue of $11.4 billion, plus-or-minus $400 million; the Street has been forecasting $11.33 billion. Intel sees gross margin of 67% in Q4, plus or minus “a couple percentage points.” Tax rate is expected to tick up to 31%. Full year capital spending is expected to be $5.2 billion, plus-or-minus $200 million; that is consistent with the company’s forecast when it reported the June quarter.
INTC in late trading is up 18 cents, or 0.9%, to $19.95.
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