Strong microchip sales help Intel post 2.6% rise in revenue

Intel reported a 2.6 per cent rise in quarterly revenue, boosted by strong sales of its microchips that power data centres and internet-connected devices.

The world’s largest chipmaker, however, said its net income fell to $1.33 billion in the second quarter ended July 2nd, from $2.71 billion a year earlier.

Profit for the quarter was hit by a one-time charge of $1.41 billion related to its plan to cut 12,000 jobs. Net revenue rose to $13.53 billion from $13.20 billion.

The recent wave of job cuts at the technology group included several hundred at the firm's flagship Leixlip facility in Co Kildare.

The global job cuts, affecting about 11 per cent of the chipmaker’s workforce, were announced against the backdrop of declining demand for personal computers and as the group shifts its focus towards cloud computing, which allows data to be stored and accessed online.

Second stage

There is also the threat, however, of some further reductions over the next 12 months as the California-based group’s restructuring plan enters a second stage and reviews certain projects.

Intel has refused to comment on the number leaving its operations in this country.

Separately, eBay last night reported a 5.7 per cent increase in quarterly revenue as its efforts to revamp its online marketplace start to pay off.

The company’s net income rose to $435 million in the second quarter ended June 30th from $83 million a year earlier.

Revenue rose to $2.23 billion from $2.11 billion.