Intel enjoys best financial quarter ever

Intel said it has just totted up the numbers on its best quarter ever, posting $2.9 billion profit on revenue of $10.8 billion for its activities in the three months to the end of June

Paul Otellini, Intel president and CEO, bragged that is was Intel's best quarterly financial performance yet. "Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company's 42-year history," he crowed.

Otellini said demand foe PCs and servers was high and growing and claimed Intel's investment in process technologies was paying off.

This helped Intel to a gross margin of 66 per cent, or thereabouts, two per cent better than predicted. And this is the number Intel most likes to keep an eye on.

Spending on R&D and acquistions was pegged at $12.7 billion, half a billion or so up on budget. $6.6 billion went on pure R&D.

Intel posted a loss this time last year of $398 million, having been hit with a $1.45 billion fine in Europe over antitrust violations. Its balance sheet says it's still paying this off. It also managed to scrabble about to find a similar sum to toss at AMD in November of last year, in an attempt to put its crooked past behind it. Although, it is currently figuring out how much it will have to bung the US authorities to dissuade the pursuit of their ongoing investigations.

Intel reckons it can keep its margin on track for the third-quarter, coming out with an $11-12 billion forecast for the current three-month period, its Q3.

Intel's numbers show that these days some 57 per cent of its revenue now comes from the Asia-Pacific region, with just 12 per cent plundered in Europe.

Intel shares were up during the day on Wall Street yesterday and managed a further two per cent hike in after-hours trading on the back of these results..