Led by strong demand for notebook platforms Intel Corp. reported Q2 revenue of $9.2 billion, up 15 percent year-over-year and down 2 percent sequentially.
　　Q2 net income was $2 billion, up 16 percent over Q2 2004, but down 6 percent sequentially. Earnings per share were 33 cents, up 22 percent from 27 cents in Q2 2004 and down 6 percent from 35 cents in Q1.
　　“Intel delivered record second-quarter revenue,” said Paul Otellini, president and CEO of the Santa Clara, Calif

.-based chip giant in a statement.
　　“Our investments in new products, advanced silicon capacity and emerging markets are paying off with growth that is outpacing the industry,” he continued.
　　“We look forward to the second half of 2005 as we ramp dual-core microprocessors into high volume, begin production on our 65nm process technology and deliver innovative new platforms,” Otellini added.
　　Intel’s results for Q1 included an additional week of business because 2005 is a 53-week fiscal year for the company.
　　As discussed in the company’s June 9 mid-quarter business update, Intel’s results for Q2 included a tax adjustment primarily related to an increase in estimated R&D credits for prior years. The reversal of previously accrued taxes increased Q2 earnings-per-share by approximately 2 cents.
　　Intel''s results for Q2 2004 included a reversal of previously accrued taxes that increased earnings-per-share by 1.3 cents, the company reported.
　　Looking ahead, Intel expects Q3 revenue to be between $9.6 billion and $10.2 billion.
　　Gross margin for Q3 is expected to be approximately 60 percent, plus or minus a couple of points, as compared to 56.4 percent in Q2. The gross margin percentage expectation for the year remains at 59 percent.
　　Expenses (R&D plus MG&A) in Q3 are expected to be between $2.8 billion and $2.9 billion, higher than the $2.5 billion in Q2, primarily driven by increases in R&D.
　　The company said it is transferring resources from 65nm start-up programs to 45nm development and increasing investments in new platforms.
　　Expenses, particularly certain marketing and compensation expenses vary depending on the level of demand for Intel''s products and the level of revenue and profits.
　　Intel’s R&D spending expectation for this year is unchanged at approximately $5.2 billion.
　　Total microprocessor units were at record levels, Intel said. The average selling price was slightly lower primarily due to an increase in Xbox processor shipments along with slightly lower computing processor prices.
　　Also, chipset units were higher; motherboard units were lower, while flash memory units were higher and at record levels, with lower average selling prices.
　　Wireless connectivity units set a record, while wired connectivity units were lower, Intel concluded.