Computer chip giant Intel Corp on Tuesday reported a jump in quarterly profits, as its newly diversified product lineup lifted revenues to record highs.
The California tech giant said its net profit for the third quarter rose 12 percent from a year earlier to US$3.3 billion, while revenues rose eight percent to a record US$14.6 billion. Both figures topped analyst forecasts.
“We are pleased by the progress the company is making,” said Intel chief executive Brian Krzanich. “We achieved our best ever revenue and strong profits in the third quarter. There is more to do, but our results give us confidence that we are successfully executing our strategy of extending our products across a broad range of exciting new markets.”
Intel, the longtime leader in semiconductors for PCs, has been shifting its focus to mobile devices and connected objects, including a recently announced heart monitor which is incorporated in audio headphones.
The chip giant has also been helped by a steadier PC market, which is showing signs of stabilizing after big drops last year.
Intel’s PC division delivered revenues of US$9.2 billion, up nine percent year-on-year, while its cloud services showed 16 percent growth, at US$3.7 billion.
Revenues linked to the so-called Internet of Things group was up 14 percent at US$530 million.
Intel shares rose 0.8 percent to US$32.46 in after-hours electronic trades after the earnings report.
Meanwhile, Qualcomm Inc has agreed to buy chip maker Cambridge Silicon Radio PLC (CSR) for US$2.5 billion, pushing out its rival Microchip Technology Inc to win the British Bluetooth specialist which is growing in areas like automotive and wearable devices.
Qualcomm, the world’s No. 1 mobile chipmaker, has agreed to pay £9 a share in cash for CSR, representing a 56.5 percent premium on the share price before the start of the offer period, the British company said yesterday.
Qualcomm’s chief executive Steven Mollenkopf said the addition of CSR’s technology leadership in Bluetooth, Bluetooth Smart and audio processing would strengthen Qualcomm’s offer in areas like portable audio, automotive and wearable devices.
“We look forward to working with the innovative CSR team globally and further strengthening our technology presence in Cambridge and the UK,” he said.
The British company in August rebuffed an approach from Microchip, saying the undisclosed price on offer was not enough.
However, the two sides had been in talks over the deal, with a deadline imposed by British regulators for yesterday.
CSR specializes in connectivity, with its chips used in products such as speaker docks and Apple Inc-owned Beats headphones.
Additional reporting by Reuters
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