Intel reports huge profit surge in the fourth quarter

Posted on 15 Jan 2010 at 14:02

Intel has announced that its profits surged by 875 per cent in the fourth quarter, after accruing revenue of 10.6 billion with a total net income of $2.3 billion and an incredible 65 per cent gross margin.

This all comes despite the firm having to pay AMD $1.25 billion in settlement money, following the two firms' agreement to end all of their disputes over intellectual property theft and antitrust.

Compared to the previous quarter, Intel's profits surged by $400 million - or $1.65 billion, including the settlement charge - while revenue increased by $1.2 billion.

Intel said it saw double digit revenue growth across all of its business groups, although sales of Atom processors and chipsets only increased by six per cent. Over the whole of 2009 though, revenue from Intel's Atom processors surged by 167 per cent.

The chip giant's performance throughout 2009 wasn't quite as strong as 2008 however, as its total revenue was down from $37.6 billion to $35.1 billion, while net income also took a $900 million hit as it reduced from $5.3 billion to $4.4 billion.

Of course, if you factor in the $1.45 billion it paid the European Commission and the $1.25 billion it paid to AMD for its anticompetitive behaviour, the firm's profits look much more promising.

This year, Intel may find itself paying another round of fines for its anticompetitive behaviour, as both New York State and the Federal Trade Commission continue their investigations.

Author: Tim Smalley

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