Intel said the
PC market is on the way up after posting the strongest first to
second quarter revenue growth for more than two decades.
Sales went up 12% sequentially to $8bn but fell 14.6%
year-on-year from $9.4bn while the company swung into net losses of
$398m when the EU's $1.45bn
anti-trust fine was factored into the results.
"Intel's second-quarter results reflect improving conditions in
the PC market segment with our strongest first to second quarter
growth since 1988 and a clear expectation for a seasonally stronger
second half," said Paul Otellini, Intel CEO.
In a conference call with analysts, the chip giant said PC
vendors has run down inventories in the first quarter - when Intel
has claimed the market had bottomed out - and were now replenishing
stocks in preparation for an upturn in the second half.
"Our customers signalled increased confidence for a seasonal
second half with their ordering patterns. I believe this reflects
how critical personal and enterprise computing has become to the
world," said Paul Otellini.
Despite this, inventories at Intel were down $240m in the second
quarter compared to a year ago, while restructuring and asset
impairment charges were ahead of the company's expectations at
$91m.
Microprocessor unit shipments were higher quarter-on-quarter it
said, but ASPs were down and net losses from equity investments and
interest were $38m.
Revenues are forecast in the region of $8.5bn for the next
quarter, plus or minus $400m. Asset and impairment restructuring
charges are estimated to be roughly $40m.