Today, Intel [NASDAQ:INTC] reported quarterly revenue of $13.5 billion, operating income of $3.8 billion, net income of $2.8 billion and an earnings per share of $0.54 using GAAP. Intel also managed to generate approximately $4.7 billion in cash while paying dividends of $1.1 billion and using $1.1 billion to repurchase stock. Additionally, Intel’s gross margin was down 0.6 percent from 64 percent to 63.4 percent representing a slight down tick in overall gross margin, which could be attributed to seasonal growth.

As you can see from the table above, Intel was up in revenue by 5 percent over the previous quarter and up 4 percent over the same quarter a year ago. Additionally, their Operating income was essentially level at $3.8 billion while their Net income was up $100 million to $2.8 billion, up 3 percent over the previous quarter and down 5 percent from $2.9 billion in the same quarter a year ago. This difference may be attributable to the possible decreases in demand in economically weak markets like Europe and Asia as well as their increased costs associated with the 22nm process still being relatively new. Intel expects these costs to decrease quarter by quarter.

While we don’t consider this much of a big deal at this moment, there is a good chance that subsequent quarters could end with similar results, which would signal signs of a possible slow down. We will reserve our judgement of Intel’s earnings until we listen to their earnings call starting in a few minutes and once we begin to see the back-to-school sales begin as well as holiday sales. Intel has a lot riding on Ultrabooks and they need to have a strong showing to justify their hundreds of millions spent on them.

Intel also provided their outlook for 3Q 2012 stating an expectation of $14.3 billion in revenue, plus or minus $500 million with gross margin coming in between 63 and 64 percent. They also stated an expectation of depreciation of $1.6 billion for the third quarter 2012. Interestingly, Intel also revised downward their revenue expectations for the entire year of 2012 to be up 3 to 5 percent over the previous year, down from the prior expectation of high single-digit growth. This appears to be a further recognition of potential issues that Intel may face as a result of the European Debt crisis and Chinese economic slowing.

Currently, pre-earnings call and post-market close and earnings announcement, INTC is up 1.3% in after-hours trading after going up 1% in regular trading. Watch for our in-depth earnings analysis after the call at 2PM PST/5PM EST.