Intel returns to profits in Q2

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Intel returns to profits in Q2

Microscope contributor

Intel swung to profit in the second quarter on the back of healthy PC and server demand that was most apparent in the enterprise sector.
 
Sales in the three months ended 26 June were up 34.5% to $10.76bn and the chip lynchpin made a profit of $2.8bn, up 18% sequentially and dramatically better than the $398m loss posted a year earlier due to the £1.45bn fine dished out by the EC.

"Our overall business was strong in Q2, particularly in the enterprise segment," said Intel CFO Stacey Smith, "the strength of the enterprise market segment led to a richer than expected mix in both server and PC clients."

The PC Client group grew sales 31% year-on-year to $7.8bn but was only marginally up on last quarter, and the Data Centre Group saw revenues rise 13% sequentially to $2.1bn, up 42% on the same period in 2010.

"The supply chain continues to be healthy with inventory levels across the supply chain appropriate for the level of demand in the PC and server market segments," Smith added.

For Q3, Intel expects revenues in the region of $11.6bn which should give confidence to resellers and distributors that may have one eye on a potential double dip recession.

Related Topics: Desktop PCs, VIEW ALL TOPICS

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