Boston, MA 10/21/2013 (wallstreetpr) – Intel Corporation (NASDAQ:INTC) has decided to delay the release of its highly anticipated Broadwell processor chips and the news comes at a time when the company has released third quarter results that managed to exceed projections. Intel has $2.95 billion of net earnings which is 5 cents a share, almost identical to the $2.97 billion in the same quarter last year. Revenue also stayed on par with last year’s result totaling $13.48 billion nearly unchanged from the $13.46 accumulated in the same quarter last year.
The company which is the leading maker of computer processors globally expects its current Haswell chip to continue doing well for the rest of the year, even after the 3rd quarter that usually has high sales as computer manufacturers gear up for the Christmas season.
Production on the Broadwell chip which will introduce ground breaking technology is no longer expected to start until the first quarter of next year as technical issues has set the project back by about 3 months. Intel CEO Brian Krzanich reiterated in a conference call with analysts on Tuesday that the company remains committed to the Broadwell project and the delay in the schedule will have no ill effects in the long term success of the new chip.
Intel remains the undisputed leader in providing processors for personal computers and their technology is usually 2 or so years ahead of what is being offered by competitors. However, the company did not respond quickly enough to the mobile device revolution and now finds itself trying to play catch up as PC sales continue to decline; since taking the helm of the company the CEO has tried to focus more on producing processors for low powered devices like devices like tablets and smartphones. Intel has also scaled back its capital expenditure target from $11 billion plus or minus $500 million to $10.8 billion plus or minus $300 million in response to the ongoing contraction in PC sales.
