Intel Q3 2011 results better than expected

Yesterday evening Intel released its profits for this year’s third-quarter with better-than-expected results.

Key takeaways:

Revenue of $14.2 billion, up $3.1 billion or rather a significant 28% from last year. (GAAP results)
Net income is up 17 per cent from Q2 2011 at $3.5 billion.

GAAP Financial Comparison

Analysis

Though the PC Client Group represents Intel’s desktop, notebook and netbook CPU and chipset offerings, somewhat unsurprisingly, the Atom processor and related chipset profits were down 32 per cent from last year. This doesn’t seem unreasonable given the stiff and fast-expanding competition of AMD’s Fusion APUs, ARM’s Cortex processor series and even Intel’s own low-power Core i3 CPUs that appear to have trodden on a few toes.

Let’s also not forget that Apple’s iPad likely left the biggest impression on the Atom market as it ate away at Atom-powered tablet devices with record sales; on balance though, success of Apple’s Core i3/i5/i7 series Mac sales may have cushioned if not reversed the overall blow to Intel.

With Atom displaying clearly disappointing results, the focus goes perhaps to Intel’s second-generation Sandy Bridge Core series of processors, which as we’ve proven many times in HEXUS reviews have shown excellent performance ranging from just good value-for-money to blazingly high-end performance.

Less notably but equally important Data Centre Group revenues grew by 15 percent, representing Intel’s server, storage and workstation division. Though only forming around 16 percent of overall revenue, the Other Intel Architecture Group grew by a figure topping 68 percent; this links in with the huge success of Intel’s Sandy Bridge line-up and its integrated GPUs that have enabled solid embedded-device sales figures.

Somewhere mixed in these figures is Intel’s acquisition of McAfee which contributed $1 billion to revenue last quarter and is likely having a significant role to play on the growth in this quarter, as well.

Signs are that Intel has even become a little more competitive as of late, with moderately increased investments in R&D and (slightly) reduced gross margins. It also appears there’s a feeling of confidence amongst investors as Intel buys back 186 million shares ($4.0 billion), having the effect of raising overall profit-per-share should growth continue.

Things have been looking up for Intel for a while and, with these latest figures, the good fortune shows no sign of abating.