Intel reports Q3

Intel Corporation recently announced third quarter revenue of $6.5 billion, up 3% sequentially and flat year-over-year.

Third-quarter net income was $686 million, up 54% sequentially and up 547% year-over-year. Earnings per share were $0.10, up 43% sequentially and up 400% from $0.02 in the third quarter of 2001.

"Although the industry is experiencing one of its worst downturns ever, we continue to move our technology forward, introducing 18 new processors during the quarter, all on our leading-edge 0.13-micron technology," said Craig R Barrett, Intel chief executive officer. "Our product and technology leadership, combined with solid execution, is paying off, bringing our microprocessor market segment share to its highest level in four years. Going forward, we remain committed to investments in new products and technologies, setting the stage for us to emerge even stronger when the economy and demand recover."

Product shipment trends (sequential)

* Intel Architecture microprocessor unit shipments were higher.
* Chipset unit shipments were higher.
* Flash memory unit shipments were higher.
* Ethernet connectivity product unit shipments were higher.

Intel architecture business

During the quarter, Intel introduced 18 new microprocessors based on 0.13-micron technology, extending the company`s performance leadership across all segments of computing. The company also launched four advanced chipsets and announced a range of technologies that will bring increased performance and new capabilities to the computing industry.

Intel increased its desktop performance leadership with high volume shipments of Intel Pentium 4 processors at 2.8, 2.66, 2.6 and 2.5GHz. The company also announced plans to introduce a 3.06GHz Pentium 4 processor that will bring Hyper-Threading (HT) Technology to the desktop in the fourth quarter. HT Technology allows a variety of multithreaded operating system and application software to run as though the PC has two processors, boosting performance by as much as 25%. Intel introduced new chipsets that support HT Technology along with leading-edge DRAMs, a faster system bus and higher performing integrated graphics. The company also increased its value segment leadership with the Intel Celeron processor at 2GHz, and said it is developing an advanced security technology, codenamed LaGrande, that will be integrated into future Intel platforms.

Intel launched 11 new mobile PC processors for mainstream notebooks at speeds up to 2.2GHz. The company also announced that its next-generation Banias mobile PC platform will include an 802.11a/b wireless networking solution along with software that will simplify and improve the security of wireless networking. Intel and VeriSign* announced plans to bring wireless security to Banias-based corporate notebooks.

For the enterprise, Intel delivered Xeon processors at 2.8 and 2.6GHz for two-way servers and workstations. Intel and IBM* announced plans to develop blade servers that will offer highly scalable performance, new reliability features and a lower total cost of ownership. In addition, the Itanium 2 processor continued to set new industry performance records. Intel and NEC announced that an Itanium 2-based, 32-way server achieved the world`s highest TPC-C benchmark result on a non-clustered Microsoft* Windows* platform. Hewlett-Packard* announced new four-processor performance records on the SAP* R/3 two-tier SD benchmark as well as the TPC-C benchmark.

Intel Communications Group

Intel began OEM customer sampling of a product code-named Calexico that will connect notebook PCs with 802.11 wireless networks in offices, homes and public "hot spots" such as airports, hotels and restaurants. Calexico is designed to support the 802.11 a and b specifications, and is being extensively validated for reliable, secure and easy-to-use wireless connectivity in forthcoming Banias processor-based notebook PCs.

In network processing, Intel introduced its first control plane processor based on the Intel XScale core along with an applications and services processor based on the Low-Voltage Intel Xeon processor, enabling cost-effective and flexible design of feature-rich networking systems. In optical, Intel introduced metropolitan area networking products based on tuneable laser technology that deliver multichannel, 10Gbps throughput across the telecom industry`s primary optical networking protocols. In storage, Intel introduced four system controllers, becoming the first company to offer a full line of RAID products that support the leading industry drivers, development tools and firmware.

Intel also announced that it is adding communications capabilities to its forthcoming 90-nanometer (nm) process technology. The company will integrate high-speed silicon-germanium transistors and "mixed-signal" circuitry for a new generation of faster, more integrated, less-costly communications chips to be introduced beginning next year. The announcement underscores Intel`s goal of driving the convergence of computing and communications through advances in silicon.

Wireless Communications and Computing Group

Intel introduced Wireless MMX technology and two flash memory technologies designed to bring the richness and excitement of desktop PC applications to wireless and handheld products based on the Intel Personal Internet Client Architecture (Intel PCA).

Intel XScale technology-based processors have been adopted in more than 25 newly introduced handheld devices, including PDAs from Acer*, Asustek*, Fujitsu-Siemens*, HP*, Hitachi*, Sharp* and Toshiba*. During the quarter, Sony* introduced the first Palm* operating system-based PDA based on XScale technology, while BSQUARE* introduced the first 2.5G cellphone/PDA based on the technology. Philips* announced a new design that will enable the company and its OEM customers to market a new generation of interactive, digital audio/video devices based on the XScale core. SONICblue* selected XScale technology to power a portable media player that will allow users to watch television programs transferred from ReplayTV* devices as well as play PC-based audio, video and photos.

Technology and Manufacturing Group

Intel disclosed nanotechnology breakthroughs that are anticipated to allow the company to be the first to bring 90nm, 300mm process technology into volume production next year. Intel`s new process will be the first to combine the smallest, highest-performing transistors utilising strained silicon, a one-square-micron SRAM cell, and high-speed interconnects that integrate copper with a new, low-k dielectric material. Intel said it plans to reuse over 75% of its 0.13-micron, 300mm process tools when it transitions to 90nm, 300mm production, thereby reducing costs and facilitating a mature tool set.

In addition, Intel disclosed an experimental three-dimensional (3D) tri-gate transistor design that achieves higher performance with greater power efficiency than traditional planar transistors. Intel believes the 3D transistor will address obstacles to scaling transistors below 30nm and help continue the pace of Moore`s Law beyond the decade.