While netbooks have been the hot market and were believed to be the one bright spot in the market, revenue from the Atom microprocessors and chipsets that drive them was $219 million, down 27 percent sequentially.
Overall, Otellini sounded upbeat on the call. «We're seeing signs a bottom in PC market segment has been reached. I believe the worst is behind us from an inventory correction level,» he said. Desktop sales hit bottom first and have followed more normal patterns since early February.
Notebooks have a longer pipeline and manufacturing process, so it took longer to work through their inventories, but now have returned to normal levels, he added.
Not only did Intel see an uptick in orders, in March it even saw some expedited orders, where customers needed product right away. Mostly, though, it was a slow time, as is seasonal. «My sense is it will stay that way until second half of the year when you see normal seasonal growth back into the business,» said Otellini.
The consumer segment has held up better than the enterprise business. The installed base of enterprise notebooks is over three years of age on average and in need of a refresh soon. Given the reticence of businesses to adopt Vista in favor of the unreleased Windows 7, large-scale replacements won't begin any time soon.
The US and China were Intel's best markets while Europe, Japan and the emerging world were weakest. Every division, though, was down year-over-year. The mobility unit took a bigger hit because it took longer to clear inventory from the pipeline. He added that the company has already shipped one million Nehalem-generation processors.
Stacy Smith, chief financial officer for Intel, said Intel is on track to reduce 2009 spending by $700 million from last year's expenses. Intel is now under 83,000 employees from a high two years ago of over 100,000. It also has cash and investments of $10.3 billion, down $1.2 billion from last year.
Due to a «high degree of uncertainty,» Intel made no precise projections for Q2 revenue. Smith did say the company expects revenue to be flat compared to Q1, with gross margin in the mid-40 percent range due to further underutilization charges, plus expenses as Intel moves its factories to 32nm designs.
During the Q&A segment, Otellini said that Larrabee, Intel's entry into the GPU market, is now in silicon and being debugged by Intel and partners. The silicon will improve over the year, with volume production beginning next year.
Ключевые слова: earnings, GPU, Intel, Larrabee, Nehalem
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