Intel quarterly sales report disappoint market
Intel came out with their second-quarter results in the market today and reported a jump in the profits by 16%. In addition, the sales were in the region of $9.23 billion. However, they still managed to disappoint the market expectations, as the profit margins were lower than expected. These results led to a fall in the share prices of Intel in the market as it fell down by around 6%. It was trading at close to $28 in the early trading on the NASDAQ Stock Market.
The company declared their results after the market closed on Tuesday. Intel posted record sales figures in their notebook processor market, which grew by around 68%. The company also posted impressive sales figures in the Flash memory chips market, which powers digital devices like cell phones and wireless gadgets.
Intel continues to perform well in their newer markets like china and Latin America and said that the next quarter is expected to be even more impressive in terms of sales. However, the end results are expected to be somewhat of a disappointment because of high investments, higher startup costs, and lower margins in products other than the microprocessors.
Andy Bryant, Intel’s chief financial officer said in a statement: “This is a good second quarter – a period when business is typically slow. The momentum of the first half appears to be continuing as we enter the third quarter. Demand is strong. The factories are full. We’re ahead of our cost targets, and business is generating high levels of cash.”