Intel appears to be on the rebound after hitting the bottom CEO Paul Otellini declared back in April
. Even though profits for the second quarter were sunk into the red by a one-time $1.45 billion fine
from the European Commission, the company still managed to report healthy sales of $8 billion
; down from $9.4 billion a year ago but significantly higher than analyst expectations of $7.27 billion.
Loss for the quarter was $398 million, or minus 7 cents per share, meaning that without the antitrust charge the chip maker would have reported close to one billion in profits. Inventory was down $240 million during 2Q, suggesting Intel’s customers are ordering again rather than going through existing stockpiles of chips. In a prepared statement, Otellini highlighted the company's improvement over the previous quarter and called this their strongest first to second-quarter growth since 1988.
As the world’s largest computer processor supplier, Intel’s financial results are usually seen as a bellwether for the computer industry as a whole, so its latest report is an encouraging sign during this slumping economy. Looking ahead, the company said it expects third quarter revenue of $8.10 billion to $8.90 billion.