Intel today posted yet another soild quarter, boasting record revenue for the fifth consecutive time. Perhaps a year from now, ARM will have stolen away some of Intel's market share on the desktop and dipped into its profits, and maybe AMD's upcoming Bulldozer will do the same, but in the here and now, Intel is about as close as a company can come to legally printing money, without actually printing money.
On a GAAP basis, Intel reported second quarter revenue of $13 billion, an increase of 21 percent from one year prior, operating income of $3.1 billion (down 1 percent), and net income of $3 billion (up 2 percent).
"We achieved a significant new milestone in the second quarter, surpassing $13.0 billion in revenue for the first time," said Paul Otellini , Intel president and CEO. "Strong corporate demand for our most advanced technology, the surge of mobile devices and Internet traffic fueling data center growth, and the rapid rise of computing in emerging markets drove record results. Intel’s 23 percent revenue growth in the first half and our increasing confidence in the second half of 2011 position us to grow annual revenue in the mid-20 percent range."
Not all the numbers were brag worthy, however. In what could be a sign that consumers are choosing tablets and/or low cost notebooks over netbooks, Atom processor and chipset revenue fell 15 percent year-over-year to $352 million. Intel also noted a net loss of $4 million from equity investments and interest, versus the company's expectation of a $50 million net gain.
Intel's solid overall quarter was driven by gains in each of its three major business divisions, including an 11 percent year-over-year revenue increase in its PC Client Group, 15 percent increase in its Data Center Group, and 84 percent gain its Other Intel Architecture group.