Global chip major Intel Corp. has reported its best quarterly performance in history with a second quarter profit of $2.9 billion, driven by strong consumer demand emanating from an improving global economy.
Intel had reported a loss of $398 million in the year-ago period, the company said in a statement.
The company’s revenue rose 34 per cent to $10.8 billion in the second quarter, compared to $8.02 billion in the corresponding period of the previous year.
“Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company’s 42-year history,” Intel president and CEO Paul Otellini said.
“Our process technology lead plus compelling architectural designs increasingly differentiate Intel-based products in the marketplace. The PC and server segments are healthy and the demand for leading edge technology will continue to increase for the foreseeable future,” Mr. Otellini added.
In its outlook, the company expects a revenue of around $11.6 billion in the third quarter.
Analysts said that the positive results give an indication of improvement in the economy as big corporate houses, which were holding back their purchases until recently, have started spending again and are buying more computers with expensive microprocessors.
In terms of revenue from different regions across the globe, Intel’s Asia-Pacific business saw a growth of 38 per cent to $6.16 billion in the second quarter this year, against the same period last year.
Revenues from the American and European regions stood at $2.17 billion and $1.29 billion respectively. The two continents contribute to over 50 per cent of the company’s total revenue.
Intel’s Atom microprocessor and chipset revenue rose by 16 per cent to $413 million in the second quarter, when compared to the first quarter this year, the statement added.
The company’s Data Centre Group and PC Client Group saw a revenue growth of 13 per cent and 2 per cent sequentially.
Intel’s rival Advanced Micro Devices Inc (AMD) will come out with its quarterly results on Thursday. IT giants Microsoft and IBM are scheduled to announce their Q2 earnings next week.