Mobile Processor Sales Drive Intel Earnings - InformationWeek

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7/22/2005
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Mobile Processor Sales Drive Intel Earnings

Intel's dominance in providing processors for notebook computers continued to propel the company to record revenue in the second quarter, but a challenge from rival Advanced Micro Devices Inc. looms in both the courts and the mobile market.

Sales of chips designed for mobile computers surged 68% in the quarter compared with the same one last year. Intel also reported record shipments of chips for wireless devices and flash memory for cell phones.

Intel's Centrino mobile platform utilizing its Pentium M processor has been a major success story over the past two years. But AMD in March introduced its Turion 64 mobile platform for 32- and 64-bit Windows-compatible processors, which has garnered socket wins at Hewlett-Packard and Acer Co. AMD has sued Intel in the United States and Japan, alleging the company has engaged in illegal monopolistic practices.

For the quarter, Intel reported net income of $2.0 billion on revenue of $9.2 billion, compared with net income of $1.8 billion on revenue of $8.0 billion in the same quarter a year ago. Intel said it expects its third-quarter revenue to be between $9.6 billion and $10.2 billion.

In the second half of the year Intel plans to ramp up high-volume production of its dual-core processors, begin utilizing a 65-nanometer manufacturing process, and introduce new platform-level products.

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