Intel reports record revenues

INTEL reported the best fourth-quarter earnings in company history yesterday, as both the chipmaker’s revenue and profit set new records.

Intel posted earnings per share of 59 cents.

Analysts polled by Thomson Reuters had forecast earnings of 53 cents per share.

Revenue for the Santa Clara, California, company rose 8% over the previous year to $11.5 billion, (€8.6bn) topping analysts’ forecasts of $11.37bn.

“2010 was the best year in Intel’s history.

“We believe that 2011 will be even better,” Paul Otellini, Intel president and chief executive, said in a written statement.

Revenue from Intel’s closely-watched Atom microprocessor and PC group was flat compared to the prior quarter, while its data centre group posted a 15% increase in revenue.

Meanwhile, the company’s gross margin was 67.5%, above expectations and slightly improved from last quarter’s 67%.

The strong quarterly results pushed Intel to new full-year highs as well.

Revenue of $43.6bn, operating income of $15.9bn, net income of $11.7bn and earnings per share of $2.05 all set records.

Intel is a closely watched bellwether by analysts.

A strong showing by Intel tends to indicate increased demand for tech spending by consumers and businesses — a sign that the economy is improving.

On Monday, Intel announced a $1.5bn, six-year agreement with graphics chip-maker Nvidia that will allow Intel access to patents for graphics chips.