The Intel Corp. delivered a better then expected turn out for sales this year. Intel's sales went up and surpassed expectations even though the economy slowed down.
Intel said yesterday that their sales will reach a gross profit margin of 67 percent. Could Intel's success be a sign that the nation's economy is improving?
Intel produces nearly 80 percent of the worlds central processing units. They partner with governments and organizations making technology more accessible and affordable for those on leaner budgets.
One of the contributing factors to Intel's growth in sales came from large corporations buying more computers then previous years, and they are buying the most expensive CPU (central processing unit) product line. Intel also invested in upgrading it's own facilities for manufacturing, thus speeding up its production.
On June 26th Intel reported revenue of 10.8 billion which is 2.8 billion higher then the previous year. It appears that the actual gross profit earnings for Intel were 3 percent more then the projected earnings. Instead of 64 percent, they had come out of the past three months with 67 percent gross profit, this was a surprise since they had just come out of one of their worst stretches in 6 years.
About a year ago Intel CEO Paul Otellini declared that personal computer sales had "bottomed out" and were making a recovery. It looks like the recovery was understated now that it is making headlines. Intel has had it's ups and downs in years previous. It is holding it's breath because of economic troubles in Europe and China.
Intel is projecting a gross profit between 11 billion and 12 billion in the third quarter of this year.
Intel shares have rose by $1.48, that's 7 percent gain. Intel's strong results topped Wall Street's forecast.
Intel believes its business has improved in the past year and a half, due to more consumer sales on refurbished and discounted micro computers.