Intel looked less lumbering and more revitalized in its third quarter. The chip maker boosted revenue 15 per cent to $10.1bn. It also pumped net income higher by 43 per cent to $1.9bn. That's a healthy chunk of change to keep on hand for a rainy day.
It was not too long ago that AMD was wreaking havoc on a bloated, lethargic Intel. Over the past year and a bit, however, Intel has revamped its product line to show better performing chips that consume less power. In addition, the company laid off thousands of workers.
Mobile and server chip sales drove Intel's growth during the third quarter.
Mobile processors, for example, accounted for $2.8bn in revenue this quarter, which compares to $2.2bn in the same period last year. Meanwhile, PC and server chip sales increased to $3.9bn from $3.5bn.
The rising demand for Intel processors did not stop the company from keeping a price war of sorts in play against AMD. Intel's average selling price for products remained flat during the quarter.
Still, Intel managed a significant rise in gross margins to 52.4 per cent - up from 46.9 per cent in the immediately prior quarter - thanks to higher chip shipments and lower manufacturing costs.
Looking forward, Intel expects revenue between $10.5bn and $11.1bn in the fourth quarter.
Investors seemed happy enough with Intel's results and outlook, sending shares up close to five per cent in after-hours trading to $26.70 at the time of this report. ®