Intel reports record profits

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Intel strengthened its hold on the chip market, reporting record profits for the fourth quarter of 2007, although the figures still managed to fall short of even its own expectations.

The company reported fourth quarter turnover of $10.7 billion (£5.3 billion), up 10 per cent from the same quarter in 2006. However this was $88 million less than anticipated by Intel. Fourth quarter operating profit was $3 billion (£1.5 billion), up 105 per cent on the same quarter in 2006. Net profit was $2.3 billion (£1.15 billion), a 51 per cent increase.

While revenue for most of its computing-related products remained in line with expectations, revenue from its NAND flash memory business was lower due to depressed market average selling prices. Intel was also hit with a one-off charge of $234 million, relating to a proposed deal between it and STMicroelectronics to create new flash venture company

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Intel achieved record shipments of processors and chipsets for the fourth quarter and for the whole 2007 financial year.

"2007 was a breakthrough year at Intel," said Intel chief executive Paul Otellini. "We realised the benefits of our investments in new products and our efforts to drive efficiencies.

Intel also predicted strong growth for 2008 spurred by new products including a low-cost processor code-named Canmore, showcased at the recent CES and designed for mobile devices.

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