Spirits of Snake

Intel Q1 earnings call notes: “healthy and balanced”

Filed under: Intel (INTC), Advanced Micro Dev (AMD)

intel corp. (nasdaq: intc) slightly beat consensus: q1 revenue was slightly winning ($9.67 billion vs. $9.63 billion consensus). eps was $0.25, but asset diminution, restructuring charges, and tax rate were higher than expected, so operating eps was stronger than consensus. june revenue viewpoint in-line, full-year margin outlook slightly better than expected. pedigree up recalcitrant in aftermarket.key points* microprocessor and chipset businesses as expected. microprocessor units crop sequentially, with asp flat. * nand revenue flat as significant price declines offset part growth. * earthy margin: 53.8%, slightly below consensus of 54%. * tax rate slightly higher than expected: 33.5% vs. 31%, and restructuring and asset-impairment charges $329 million vs. $100 million feeling. operating profits stronger than appears. * $2.5 billion share repurchase reduced share countjune revenue guidance: in line with consensus.to the utmost-year auspices: no fy revenue guidance, but gross brink guidance of 57% somewhat better than expected. intel maintains previous margin guidance despite drop in nand pricing that whacked gross edge in q1.come out withfinancial modelwebcast (5:30pm edt)conference recruit notes (jonathan kennedy reporting):5:30: call begins… customary introduction, instructions, outlines, disclaimer etc.5:35: “q1 marked very good start.” improvement allowed large dividend. strong demand an eye to 45 nanometer products. all ambit grew, north america stood out because of strong server demand. server business particularly strong and recorded record revenues. all segments “healthy and balanced.”5:37: transition to mobility continues. segment shipments up. shipment crossover from desktop pcs to notebook pcs to happen this year, not next.5:40: nand business: “making decisions” to slacken oversupply go forth. “we entered nand to make legal tender, and we determination take up to make decisions with this in mind.”5:45: three important trends… competitive contention of core business superb. benefits of 45 nanometer process technology “tangible.” product costs declined, supports make margin expansion. power in late growth initiatives. progress in product development.5:47: asps approximately flat. server microprocessor separate particularly strong. all geography segments experienced y/y intumescence. north america showed strongest growth. 45 nanometer server products strongest.5:50: taxes higher (33.5% vs 31%) because more products created in “higher-tax jurisdictions”5:52: forecast for q2: planning for revenue between $9 and $9.6 billion. flash revenue to declivity by $200 million from quarter to mercy. gross margin for q2 expected to be 56%… lower chipset inventory write-offs.5:54: spending for r&d and mg&a in q2 between $2.8 and $2.9… restructuring and asset-write-offs to be $250 million.5:55: beyond q2: margins to improve, commitment maintain shapely-year estimate for gross margin at 57%. strength in core concern offsets weakness in nand. r&d spending will be $6 billion, mg&a bequeath be $5.5 billion. taxes will be 33% for remaining quarters in 08.5:58: q&a begins… deutsche bank analyst asks about general demand environment. wants color on whether on presentation is strengthening or weakening, whether asps determination go up or down… answer: everything is spread out, milieu normal.6:04: bank of america analyst asks in the air outlook for the sake of core trade in q2, and what’s driving it… answer: a category of things, primarily notebook products. 75% of revenue not in the us. during unaccommodating economic times, companies overturn to information technology to recover productivity. intel in good condition.6:08: citi analyst asks for clarification on macro territory, specifically on europe… meet: no signs of weakness. 8% y/y intumescence in europe.6:11: ubs analyst asks about north american strength. how much is attributed to pent up demand for 45 nm. wants color on pertinacity due to weakness in fiscal services… answer: financial services weren’t moronic, looking for greater affair speed.6:19: goldman analyst asks for quantification of how nand is dragging down profits… surrejoinder: more than we would have liked. can’t sway more.6:22: goldman analyst asks why running expects margins to improve in second half… responsible: strength in core business… etc…6:25: jpmorgan analyst asks more utilization rates… answer: utilizations are in “sweet whiteheads,” “not too intense, not too cold.”6:26: lehman analyst asks here mobility and why operating rim decreased… answer: more resources allocated to sector and increased
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