Today we got Intel's much awaited earnings report for the 3Q 2009
. From what it looks like, the numbers are very promising and appear to be in line with Intel's expectations of their profits - beating even the most optimistic expectations on Wall Street.
Intel reported third quarter revenue in a tune of $9.4 Billion which was noted as the largest second to third quarter growth in over 30 years. Intel also increased their operating income to $2.6 billion and net income to $1.9 billion earning an EPS [Earning-Per-Share] of 33 cents.
The highest jump in profitability between second and third quarter was a result of a record 1.45 billion dollar fine, which Intel had to pay as a result of investigation by European Commission. Thus, return to normal revenue numbers seemed like a huge jump, but in reality it is a return to normalcy.
If you take the average of Intel's earnings from 2008, you will get an average of $9.4 billion per quarter in 2008. This indicates to us that Intel has returned to its 2008 growth numbers and has significantly turned around its shrinking of revenue and profit margin. This return to the normal pre-recession numbers indicates that technology is one of the leading factors needed in order to further the economic growth of our country and to continue to fuel a recovery.
This growth can strongly be attributed to products such as the Intel Atom processor and Xeon server chips which Paul Otellini, Intel president and CEO, sees as being a product that will usher in a new wave of innovation and high performance and low power computing attributable to the new 32nm fabrication process.
What one can conclude is that Intel is back in business and is once again firing on all cylinders. Intel is working to continue their growth that they experienced in 2008 and possibly even help fuel the global economy's recovery. AMD reports their earnings on Thursday, and we'll cover that event as well.
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