Intel profit growth driven by internet growth

Intel Corporation has reported full-year revenue of $54bn and posted fourth quarter revenue of $13.9bn.

Intel Corporation has reported full-year revenue of $54bn and posted fourth quarter revenue of $13.9bn.

Income after tax increased by 13% to $3.4bn. The largest business at Intel, the PC client group, posted revenue of $35.4bn, up 17% on 2010. Its Data Center group posted revenue of $10.1bn, up 17% on 2010.

The company is looking for a boost in 2012, with the introduction of ultrabooks powered by Intel chips and Intel-based smartphones.

“2011 was an exceptional year for Intel,” said Paul Otellini, Intel president and CEO. “With a tremendous product and technology pipeline for 2012, we’re excited about the global growth opportunities presented by ultrabook systems, the datacentre, security and the introduction of Intel-powered smartphones and tablets.”

Otellini said that growth in internet traffic was fuelling Intel’s business. “As the volume of traffic crossing the internet continues to explode, companies and individuals are searching for simple ways to store, manage and access this flood of information. This mega trend led to a fantastic year for our Data Center group, with revenue up 17% on record microprocessor units, exceeding $10bn for the first time. But this wasn't just servers. Storage revenue was up 42% to a new record high, and our Embedded Communications Infrastructure business was up 18%, also to a new record high.”

On the SeekAlpha financial website, blogger Bill Maurer posted: "The future of chips appears to be in the mobile segment and possible ultrabooks, and ARM seems to have the edge there. However, Intel is the giant in the room, and I think that it is set up to do well going forward.”

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