Driven by strong processor sales, Intel delivered an impressive set of third quarter results, prompting executives to say the global economy appears on the mend.
Intel posted third quarter revenue of $7.8 billion - a 20 percent year-on-year rise. This was the best year-on-year compare Intel has seen since 1996. A 26 percent surge in Intel's processor business was the main factor in the strong period.
Over the past year, Intel has trimmed its workforce while experiencing an uptick in revenue, which has helped its bottom line. The company reported net income of $1.7 billion for the third quarter - a 142 percent year-on-year gain. Earnings per share also jumped 150 percent from last year's Q3 to $0.25 per share.
"The third quarter turned out to be one of the better quarters we have seen," said Intel's CFO Andy Bryant.
The worldwide economy is not booming by any means, but Intel is seeing positive signs of a large scale recovery, Bryant said.
"Clearly, the third quarter is more than you could ever call seasonality," he said. "It's more than just (that). We are not looking at the US and saying, 'My god. The good times are here.' . . . There are signs; there are bits of evidence, but there is certainly no overwhelming rush to increase IT budgets that we have seen."
A few regions performed particularly well in the quarter, including China, Taiwan, India and Australia - all of which set revenue records.
The Intel Architecture Business churned out $6.84 billion in revenue for Q3 compared to $5.41 billion in the same period last year.
But while microprocessor sales were strong, Intel continued to see weakness in its communications/flash memory business. The Wireless Communications group saw sales drop from from $586 million last Q3 to $450 million this quarter.
Overall, strong notebook sales and Xeon server sales helped Intel out in the quarter.
The company expects revenue between $8.1 billion and $8.7 billion for the fourth quarter. ®