Intel has reported first-quarter revenues of US$6.75 billion ($11.39 billion), down 6 percent sequentially and flat year-over-year. The results were driven by lower shipments in microprocessors, chipsets, motherboards, flash memory and Ethernet connectivity products.
First-quarter net income was US$915 million ($1.54 billion), down 13 percent sequentially and down 2 percent year-over-year. Earnings per share were US$0.14 ($0.24), down 13 percent sequentially and flat with the first quarter of 2002. Intel expects second quarter revenue between US$6.4 billion ($10.8 billion) and US$7.0 billion ($11.81 billion).
"Our financial performance for the quarter was solid with our computing-related business performing better than expected and our flash business coming in below expectations," said Craig R. Barrett, Intel chief executive officer.
"But leadership products such as Centrino and Manitoba, along with the scheduled ramp of our 90-nm process technology in the second half of the year, help to position us well for future growth."
Barrett reported the gross margin percentage at approximately 52 percent, higher than anticipated due to a combination of lower than expected startup costs, unanticipated sales of previously reserved inventory, and a greater percentage of higher-margin product in the overall revenue mix. That percentage is expected to drop to approximately 50 percent in the second quarter, and 51 percent for the whole of 2003.
Intel’s first quarter was punctuated by the release of Centrino mobile technology and the Manitoba chip. The company also introduced the 875P chipset, supporting a new 800 MHz system bus for Pentium 4 processors along with Hyper-Threading technology and a dedicated bus for Intel's Gigabit Ethernet components that enables faster network data transfers.
The company said that a chipset code-named Springdale will be launched later in the second quarter, bringing many of the new features of the Intel 875P chipset along with integrated graphics to corporate and mainstream PCs.
The Intel 875P and Springdale chipsets are also designed to be used with Intel's next-generation processor for performance desktop PCs, code-named Prescott, which is scheduled to be introduced in the second half of the year. Based on 90-nm technology, Prescott will include enhancements to Intel's Hyper-Threading Technology and the NetBurst microarchitecture.
The next member of the Itanium processor family, code named Madison, is scheduled for a mid-year introduction. The processor is based on 0.13-micron technology, provides up to 6 MB of cache memory, and is designed to plug into existing Itanium 2 system designs.
In the second half of 2003, Intel plans to introduce a lower-power version of the Itanium processor, code- named Deerfield, designed for DP workstations and servers. The company plans to further expand the Itanium family with a 9-MB cache version of the Madison processor in 2004, followed by a dual-core processor code-named Montecito in 2005.