Intel-Wind River Systems and Q1 Income

Intel has been looking for ways to expend into new markets, and the acquisition of Wind River Systems for $884 million is a move in the right direction. Mercury News informs us that this is the first big acquisition for the microprocessor company in eight years.

According to Trading Markets, Wind River Systems first quarter of fiscal 2010 had a total revenue of $82.47 million, which is down from $87.86 million for the same quarter of fiscal 2009. That is a drop of 6 percent. Gross profit was $64.16 million, compared to $65.18 in the same period the year before.

Since the news, investors of Wind River and Intel have reacted positively, Intel stock rose by 19 cents to $16.13 and Wind River’s rose to $3.76 to $11.76, which is an increase of almost 50 percent. Intel will now purchase Wind River’s outstanding stock for $11.50 a share.