In the penultimate analyst briefing for Intel (INTC) CEO Paul Otellini this evening, following a report of Q4 revenue that met analysts’ estimates, and profit that narrowly beat, and a somewhat disappointing outlook, the chip giant’s chief said that despite a “relatively soft PC” market in 2012, the company managed to generate “$1 billion of net income every month.”
Otellini touted advances in the fourth quarter, such as its 64-bit server computing system-on-a-chip, “Centrogen.” He said PC makers were “embracing innovation as we are in the midst of a radical transformation of the computing experience” with different kinds of tablet and PC hybrids showing up in the market.
“The volume of systems less than one inch thin grew 18 fold last year in the US, and we expect to see the same trend continue around the world,” said Otellini, speaking to a trend of thinner and lighter laptop computers.
To advance those thin and light machines, Otellini reiterated that the company will introduce its “Haswell” chip family in the first half of the year. He called it “one of the most significant changes to the PC since Centrino in 2003.”
“It will deliver the single largest generation to generation battery life improvement in Intel’s history and is inspiring a new wave of ultra sleek, convertible, touch base designs across our customer base.”
Otellini also noted the company will deliver versions of its “Xeon” server chips and “Atom” mobile processors for phones and tablets at 22-nanometer transistor feature sizes “later this year.”
When it came time for Q&A, Ross Seymore of Deutsche Bank said capital expenses were “outgrowing revenue,” and said based on the stock’s performance, “it really looks like investors are dubious as to when returns come from those investments.”
Otellini said that investments being made now were for the “bricks and mortar” of building out chip fabs, and the transition to 450-millimeter wafers, and that “as we finish up the 14-nanometer factories and begin deployment of the construction and equipping of the 10-nanometer factories we need those factories.”
Excluding approximately $2 billion to be spent on 450-millimeter, Intel’s capex this year of $13 billion would actually be more like flat with last year’s $11 billion, he pointed out.
Otellini pointed out that leading-edge chip manufacturing capacity is “the single greatest asset that we have,” as it brings “the lowest cost for us on a per unit basis.”
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