Intel Q1 Revenue Down; Atom Sales Fall

Intel report slumping Q1 numbers. Yep, we’re still in a recession.

It’s grim times in the economy, but Intel still managed to beat expectations with news that things aren't as bad as initially anticipated. The company reported earnings and revenue down 55 percent and 26 percent, respectively. Gross margin also fell from 53 percent to 46 percent.

The slump in the numbers should come as no surprise given the sagging economy, which has hit the computer industry as a whole since late 2008. According to Mercury Research, shipments of x86 CPUs for desktops, servers and notebooks declined 18 percent between the third of fourth quarter of 2008. Overall, the x86 market was down 8.8 percent as compared to fourth quarter 2007.

The Intel Atom processor has always been a bright spot for the company, thanks to the growing netbook and nettop market, which appeal to the price-sensitive buyer. Sales of the Atom accounted for $219 million for the quarter, which represents a 27 percent decline from the prior quarter.

Intel is optimistic for brighter days ahead, as company CEO Paul Otellini said during a conference call, "We are seeing signs that the bottom of the PC market segment has been reached. I believe the worst is now behind us."

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  • Anonymous
    I'm sure Intel has multi-millions somewhere stocked. We won't be seeing that company going down,even if the recession takes another year or two.
  • solymnar
    You're probably right ProDig.

    Intel hasn't been known to mismanage funds and has been running in the black for a loooong time now. They also don't hesitate to down size when its beneficial seeming to prefer shrinking instead of risking having too much red ink at the bottom line.

    In the position they are now...they can afford to be careful.
  • hellwig
    Don't forget the millions Intel is spending trying to bully AMD and NVIDIA into paying more for licensing rights. That's going to bite them in the end too (especially when AMD and NVIDIA don't back-down and just pay Intel what it wants).