In The Santa Clara, California, based computer processor manufacturer, Intel has posted results that are above the markets expectations. There is a 22 percent jump in sales over the year-ago quarter. In the after hours of trading, Intels shares rose 9 cents to $23.08. The company reported a quarterly net income excluding one-time items of $3.2 billion, or 59 cents per share, on $13.1 billion in sales.
During the year ago period, the company had posted a net income of $2.9 billion or $51 cents per share, on $10.8 billion in sales. Analysts had expected quarterly net income of $2.8 billion, or 51 cents per share, on $12.8 billion in sales. There has been a definite slowdown in the PC market, but Intel has been able to keep its profits intact due to new orders for modernization of data centres, which are the engines of cloud computing.
Talking to analysts, Paul S. Otellini, Intels chief executive said, This was a very strong quarter across all our product lines and throughout the world. Strong corporate demand for our most advanced technology, the surge of mobile devices and Internet traffic fuelling data centre growth, and the rapid rise of computing in emerging markets drove record results. Demand for cloud computing is created by the soaring popularity of smartphones and tablets, which provide consumers with continuous, on-the-fly access to the Internet.
On the other side of the spectrum, Qualcomm posted a net increase in income by 35 percent to $1.04 billion. The companys revenue rose 34 percent to $3.62 billion. The maker of wireless chips credited robust smartphone adoption. The company has also raised its guidance. However, Qualcomm Inc.'s stock fell $1.50, or 2.6 percent, to $55.77 as most investors were expecting even stronger results.
Qualcomm Chairman and Chief Executive Paul Jacobs said during a conference call with analysts, "Our results and guidance really highlight the fact that around the world, smartphone excitement is continuing. As we look beyond that to mobile computing and new tablet devices coming to market, I think there's just a lot to look forward to."
If Intel represents the old guard of computer industry, Qualcomm represents the new stream of mobile computing. The stellar results from Intel and Qualcomm underscore the fact that both the companies have been able to adapt to the new realities of the market. However, the results also indicate that as cloud computing and smartphones become more popular, companies like Qualcomm might be in a position to take a more prominent role in the semiconductor world.
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