Intel First-Quarter Revenue $9.4 Billion; Earnings Per Share 34 Cents
The Intel 8500 chipset will also support future dual-core Intel Xeon processors along with Intel(R) Virtualization Technology, which will help users run multiple operating system environments simultaneously. The company has accelerated the Intel Virtualization Technology program by releasing a preliminary specification to developers and is planning to include support in desktop processors and chipsets this year, one year earlier than previously planned. The company introduced the Intel(R) IOP333 I/O storage processor based on Intel XScale(R) technology, which offers enhanced RAID 6 storage capabilities that protect against dual-disk failures.
Intel boosted the performance of its 64-bit Intel Xeon processor for volume servers by doubling the processor's cache memory to 2 MB. The 64-bit Intel Xeon processor-based platform has become the company's fastest ramping server platform ever, with over two million processor unit shipments in its first eight months of availability.
Fujitsu(1) chose the Itanium(R) 2 processor for its new Primequest(1) line of mainframe-class enterprise servers that combines data center-class reliability and scalability with affordable, standards-based technology. In addition, Intel announced plans to introduce a version of its Intel Virtualization Technology for Itanium-based platforms later in the year.
The company also announced the Intel(R) Software Network, which gives programmers the development tools, training and advice needed to accelerate the development of applications that take advantage of Intel multi-core processors with 64-bit computing capability.
For clients, Intel introduced the company's first PC platform based on a dual-core microprocessor. Designed for PC power users, the new platform includes the Pentium(R) Processor Extreme Edition 840, which provides two processor cores and Hyper-Threading (HT) Technology, allowing up to four software threads to run simultaneously. The platform also includes the Intel(R) 955X Express Chipset, which features Intel(R) High Definition Audio along with support for dual-channel DDR2 memory, up to 8 GB of system memory, PCI Express devices and RAID disk drives. The company announced plans to deliver a dual-core Intel(R) Pentium(R) D processor-based platform for mainstream PCs later in the second quarter.
Intel also introduced five new microprocessors that bring 64-bit capability to Intel processor-based desktop PCs. The Pentium(R) 4 processor Extreme Edition 3.73 GHz with HT Technology features a 1,066 MHz front-side bus and 2 MB of L2 cache memory for increased performance. New Pentium 4 processors in the 6XX sequence offer 64-bit computing capability, HT Technology, a 2 MB cache, Enhanced Intel SpeedStep(R) Technology and Execute Disable Bit technology. Intel also announced plans to make the 64-bit capability available throughout its desktop processor line this year, including in Celeron(R) D processors.
The company introduced a new Intel(R) Centrino(TM) mobile technology platform for notebook PCs. Based on new Pentium(R) M processors, the mobile Intel(R) 915 Express chipset, Intel(R) PRO/Wireless 2915ABG wireless LAN components and network connection software, the new platform is expected to be adopted in more than 150 different notebook designs ranging from wide-screen, 17-inch systems to small, lower-power machines weighing less than three pounds. New platform features include higher-quality integrated graphics, Intel High-Definition Audio, Enhanced Intel SpeedStep Technology, Display Power Saving Technology 2.0, a faster front-side bus and support for DDR2 memories and PCI Express peripherals.
The company introduced Intel StrataFlash(R) Embedded Memory, bringing the high performance, high density and cost-effectiveness of Intel's multi-level cell flash technology to embedded applications. Available in densities ranging from 64Mb to 512Mb today, with 1Gb becoming available in the second quarter, the new devices are Intel's lowest cost-per-bit flash solutions for market segments including consumer electronics, industrial automation and wire-line communications. Intel also began shipping its first 90nm flash products and shipped samples of its first 90nm flash memory with multi-level cell technology, code-named Sibley. The company also introduced new software for handsets based on Intel flash memory that helps accelerate the storing of large files such as digital photos, music and video.
Intel had record shipments of application processors for cellular phones, with unit sales nearly doubling from the first quarter of last year as designs from customers including Motorola(1), Palm(1) and Samsung(1) ramped in volume.
Intel also introduced its first WiMAX component, designed for use in modems that connect homes and businesses to emerging WiMAX-based wireless broadband networks. Formerly code-named Rosedale, the Intel(R) PRO/Wireless 5116 broadband interface is being designed into products from 11 of the industry's leading equipment providers. In conjunction with the product announcement, 14 telecommunications service providers from around the world announced plans to work with Intel in bringing WiMAX networks to the marketplace.
During the quarter, Intel and Alcatel(1) announced plans to conduct WiMAX field trials involving fixed, nomadic and mobile deployments. In addition, Intel and ZTE(1), China's largest telecommunications equipment provider, announced plans to develop WiMAX solutions based on Intel silicon. The companies will promote WiMAX specifications and work with regulators in key global markets to secure spectrum for WiMAX networks.
Digital Home Group
Intel completed the acquisition of Oplus Technologies(1), a leading provider of video processing products and technologies for digital televisions and displays. The acquisition, which closed in the beginning of the second quarter, provides Intel with technologies that can complement its growing portfolio of consumer electronics (CE) ingredients and platforms.
The company also introduced the Intel(R) 854 Chipset and development platform for CE devices such as Internet protocol-based digital set-top boxes and digital media recorders. The Intel 854 chipset includes Intel Extreme Graphics 2 technology for rich graphical user interfaces and supports Intel's Celeron(R) M, Pentium M and Pentium 4 processors. Toshiba announced plans to introduce a high-definition DVD player based on the Intel 854 chipset later this year.
Technology and Manufacturing Group
During the quarter, Intel demonstrated working samples of its first 65nm microprocessor designs for notebook and desktop platforms. The company remains on schedule to ship 65nm microprocessors during the year with volume ramping in four 300mm factories in 2006. The company also announced plans to build a second assembly and test factory in Chengdu, China.
Intel scientists announced a breakthrough in which standard manufacturing processes were used to create the world's first continuous-wave silicon laser. The technology could lead to low-cost, high-quality lasers and optical devices for use in computing, communications and medical applications. In addition, researchers from Intel and QinetiQ(1) announced they have successfully built "quantum well" transistors that provide fast switching performance at low power levels. The technology could become a promising candidate for making microprocessors in the middle of the next decade.
Intel will hold a public webcast at 2:30 p.m. PDT today on its Investor Relations Web site at www.intc.com. A replay of the webcast will be available until July 19.
STATUS OF BUSINESS OUTLOOK AND MID-QUARTER BUSINESS UPDATE
During the quarter, Intel's corporate representatives may reiterate the Business Outlook during private meetings with investors, investment analysts, the media and others. Intel intends to publish a Mid-Quarter Business Update on June 9. From the close of business on June 3 until publication of the Update, Intel will observe a "Quiet Period" during which the Business Outlook disclosed in the company's press releases and filings with the SEC on Forms 10-K and 10-Q should be considered to be historical, speaking as of prior to the Quiet Period only and not subject to update by the company. For more information about the Business Outlook, Update and related Quiet Periods, please refer to the Business Outlook section of Intel's Web site at www.intc.com.
RISK FACTORS REGARDING FORWARD-LOOKING STATEMENTS
The statements in this document that refer to plans and expectations for the second quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Many factors could affect Intel's actual results, and variances from Intel's current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the factors accompanying certain of such statements above and set forth below to be the important factors that could cause actual results to differ materially from Intel's published expectations. A more detailed discussion of these factors, as well as other factors that could affect Intel's results, is contained in Intel's SEC filings, including the report on Form 10-K for the year ended Dec. 25, 2004.
-- Intel operates in intensely competitive industries. Revenue and the gross margin percentage are affected by the demand for and market acceptance of Intel's products, the availability of sufficient inventory to meet demand, pricing pressures and actions taken by Intel's competitors, and the timing of new product introductions. Factors that could cause demand to be different from Intel's expectations include changes in customer order patterns, including order cancellations, changes in the level of inventory at customers, and changes in business and economic conditions.
Be the first to review this article