Intel announced a revenue up 34 percent to a record USD 10.8 billion in the second quarter on strong demand from corporate customers for the group's most advanced microprocessors. The chipmaker's operating profit reached USD 3.98 billion in the quarter, compared to a year-earlier USD 12 million operating loss after counting a USD 1.45 billion European Commission fine for abuse of dominant position. Excluding the fine, Intel's operating profit grew by 177 percent year-on-year, and its net profit increased by 175 percent to USD 2.9 billion. Intel reported that its PC client group revenue rose by 2 percent and data centre group revenue rose by 13 percent sequentially, with record mobile microprocessor revenue in both areas. Intel Atom microprocessor and chipset revenue grew by 16 percent sequentially, with an overall microprocessor average selling price up slightly on the first quarter. Intel expects to generate USD 11.6 billion of revenue in the third quarter, give or take USD 400 million, and to maintain its gross margin at 67 percent. For the full year, its gross margin is likely to be 66 percent, plus or minus a couple percentage points, versus its previous expectation of 64 percent. Capital spending should hit around USD 5.2 billion, compared to its earlier forecast of USD 4.8 billion, plus or minus USD 100 million.
