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Intel posts better than expected Q3 results

Computer chip maker Intel has posted stronger than expected third-quarter financial results, indicating a recovery from the effects of the economic downturn.

The results provide evidence of the general market rebound in 2010 that many IT suppliers are predicting.

Intel's earnings for the quarter were down 8% on the same period in 2008 in contrast with drops of 15% in the previous quarter and 26% in the first quarter compared with the year before.

Revenues of $9.4bn were well ahead of Intel's $9bn mid-point forecast in August and the $9.06bn expected by Wall Street.

Earnings per share of 33 cents a share were above analyst expectations of 28 cents a share, according to Thomson Reuters.

Paul Otellini, chief executive at Intel, said the results underscore that computing is essential to people's lives, proving the importance of technology innovation in leading an economic recovery.

Intel's Mobility Group that supplies chips for laptops and netbooks performed the best with sales up 19%, while business sales rose 14%.

Otellini said that while netbooks should see significant growth in 2010 over 2009, the notebook market is still flourishing.

The release of Windows 7 on 22 October is expected to boost sales further as businesses upgrade to the new operating system, many of them from Windows XP and not Vista.

Otellini said he expects to see corporate refreshes to begin in 2010 after businesses have had time to evaluate Windows 7.

Intel shares rose nearly 5% in after-hours trading to $21.48, which comes after a nearly 35% since the beginning of the year, according to the Financial Times.


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