SAN FRANCISCO (07/18/2000) - U.S. chip giant Intel Corp. Tuesday had some very good news to announce -- strong second-quarter financial results with both the company's revenue and unit shipments of its microprocessors and flash memory setting new records.
For the second quarter of fiscal 2000, which closed July 1, 2000, Intel recorded revenue of US$8.3 billion, a new company record, up 23 percent from the year-ago quarter, the chip vendor said in a statement. Excluding acquisition-related costs, net income was $3.5 billion and earnings per share were 50 cents, increases of 98 percent and 92 percent respectively on the second quarter of fiscal 1999.
"We are very pleased with our record quarterly results in what is normally a seasonally slow quarter," Intel Chief Executive Officer and President Craig Barrett said in the company statement. "We saw strong demand in all business groups, especially for microprocessors, flash memory and networking silicon."
He added that he expects strong demand for Intel's products to continue into the second half of this year. Revenue for Intel's third quarter will be above this quarter's $8.3 billion mark, according to the company.
Factoring in the acquisition-related costs in the order of $415 million, net income was $3.1 billion and earnings per share were 45 cents. Intel noted in the statement that all share and per share amounts have been adjusted to reflect the company's 2-for-1 stock split, which is payable to Intel shareholders July 30.
A group of 20 brokers polled by First Call/Thomson Financial July 13 estimated that Intel would record earnings per share of 99 cents for the second quarter of fiscal 2000 up from 51 cents for the year ago period. The First Call estimate did not reflect the 2:1 stock split. Intel said the pre-split earnings per share excluding acquisition-related costs were $1, while earnings per share including the costs were 90 cents.
Second-quarter net income and earnings per share include Intel's previously announced charge of around $200 million to cover the remaining costs of a program to fix faulty PC motherboards based around the company's 820 chip set.
The chip set's MTH (memory translator hub), which translates signals from SDRAM (synchronous dynamic random access memory) to the 820 chip set, was faulty, potentially causing systems to fail or data to be corrupted. [See "Intel to Take $200M Q2 Charge for Motherboards Fix," June 20.]Intel also announced Tuesday that it will shortly start shipping its Itanium processor for use in end-user pilot installations. The company added that it now expects to begin recording revenue from Itanium in the fourth quarter of this year, not the third.
Intel is due to release a 1.13GHz version of its Pentium III processor on July 31, initially in limited volume. The U.S. chip maker is also due to take the wraps off its Pentium 4 family of processors formerly codenamed Willamette later this year. The first Pentium 4 versions are expected to run at clock-speeds of around 1.4GHz.
Although Intel's results were released after the market closed Tuesday, the company's shares closed at $143 down 2.3 percent on Monday's close,Intel, based in Santa Clara, California, can be reached at +1-408-765-8080 or via the Internet at http://www.intel.com/.