|The Santa Clara-based chip giant reported Q2 revenue of $8.7 billion USD. Operating income came in at $1.35 billion USD while net income was $1.3 billion USD. These figures represented an 8 percent, 26 percent and 44 percent increase respectively over Intel's Q2 2006 performance. However, the results were also 2 percent, 19 percent and 22 percent respectively lower than Q1 2007.|
|Intel is projecting revenue of between $9.0 billion USD to $9.6 billion USD for Q3 2007. The company also expects a gross margin of 52 percent and will spend roughly $2.75 billion USD on research and development.|
This bad news showed in the stocks. Intel stocks have dropped more than 5% today alone! ($1.35) However they are still up big on the year.
Q3 will be much better (back to school). I expect margins to be much larger.