Intel Corporation today reported second-quarter revenue of $10.8 billion, up 34 percent year-over-year. The company reported operating income of $4.0 billion, net income of $2.9 billion and EPS of 51 cents.

"Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company's 42-year history," said Paul Otellini, Intel president and CEO. "Our process technology lead plus compelling architectural designs increasingly differentiate Intel-based products in the marketplace. The PC and server segments are healthy and the demand for leading-edge technology will continue to increase for the foreseeable future."

Q2 2010 Highlights

• PC Client Group revenue was up 2 percent sequentially, with record mobile microprocessor revenue.
• Data Center Group revenue was up 13 percent sequentially, with record server microprocessor revenue.
• Intel Atom microprocessor and chipset revenue of $413 million, up 16 percent sequentially.
• The average selling price (ASP) for microprocessors was slightly up sequentially.
• Gross margin was 67 percent, 3 percentage points higher than the midpoint of the company's expected range of 62 to 66 percent.
• R&D plus MG&A spending was $3.25 billion, higher than the company's prior expectation of approximately $3.1 billion.
• The net gain from equity investments and interest and other was $204 million, higher than the company's revised expectation of $180 million.
• The effective tax rate was 31 percent, slightly below the company's revised expectation of approximately 32 percent.

Business Outlook
The Outlook for the third quarter does not include the effect of any other acquisitions, divestitures or similar transactions that may be completed after July 12.

Q3 2010

• Revenue: $11.6 billion, plus or minus $400 million.
• Gross margin: 67 percent, plus or minus a couple percentage points.
• R&D plus MG&A spending: Approximately $3.2 billion.
• Impact of equity investments and interest and other: approximately zero.
• Depreciation: Approximately $1.1 billion.

Full-Year 2010

• Gross margin: 66 percent, plus or minus a couple percentage points. The company's prior expectation was 64 percent, plus or minus a couple percentage points.
• Spending (R&D plus MG&A): $12.7 billion, plus or minus $100 million. The company's prior expectation was $12.4 billion, plus or minus $100 million.
• R&D spending: Approximately $6.6 billion. The company's prior expectation was approximately $6.4 billion.
• Tax rate: Approximately 32 percent for the third and fourth quarters, higher than the company's prior expectation of 31 percent.
• Depreciation: Approximately $4.4 billion, plus or minus $100 million.
• Capital spending: $5.2 billion, plus or minus $200 million. The company's prior expectation was $4.8 billion, plus or minus $100 million.

Status of Business Outlook
During the quarter, Intel's corporate representatives may reiterate the Business Outlook during private meetings with investors, investment analysts, the media and others. From the close of business on Aug. 27 until publication of the company's third-quarter earnings release, Intel will observe a "Quiet Period" during which the Business Outlook disclosed in the company's news releases and filings with the SEC should be considered as historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.

For a consolidated summary statement of operation data, please visit this page.