CEO Otellini says strong third quarter, driven by a spike in microprocessor shipments, is a sign that Intel's restructuring efforts are succeeding A spike in the number of microprocessor units shipped helped Intel record an increase in its third-quarter revenue and income, the company said Tuesday.Intel reported third-quarter revenue of $10.1 billion, a 15 percent increase year-over-year, beating Thomson Financial analyst estimates of $9.617 billion. The company also recorded net income of $1.9 billion, a 43 percent increase year-over-year.The company recorded $0.31 in earnings per share, matching analyst estimates. The strong quarter is a sign that Intel’s restructuring efforts are succeeding, said Paul Otellini, president and CEO of Intel, in a conference call. The company saw better operational efficiency by cutting costs and reducing the headcount by 12 percent from last year’s total.This not an end of the strategy, but part of larger recovery strategy, said Andy Bryant, Intel’s newly minted chief administrative officer. The company is in line to record $2 billion in savings and operational efficiency in 2007, Bryant said.The company’s headcount currently stands at 88,000 and is expected to fall to 86,000 by the end of the year, he said. The results were helped by a healthy global demand for microprocessors and chipsets, which strengthened as the quarter progressed, Otellini said. The number of Intel chip sets shipped went up with mobility and vPro, a hardware and software platform to manage business PCs, Otellini said.“Notebooks as a generic product type is igniting in markets around the world,” Otellini said, adding that Santa Rosa and Centrino were getting wide acceptance as mobile platforms.Intel shipped more than 2 million quad-core processors during the quarter, the company said. Though the company’s Flash Memory Group had a year-over-year increase in net revenue, it recorded an operating loss of $142 million.A number of big announcements came during the quarter, which ended Sept. 29. At the Intel Developer Forum in September, the company announced it will ramp up performance and energy efficiency in its microprocessors by using a 32-nanometer process technology starting in 2009, with the Nehalem processors.It also announced the next generation of vPro processor technology, during the quarter. The company also estimated revenue for the fourth quarter to be between $10.5 billion and $11.1 billion.Intel’s stock was trading at $26.75 in after-hours trading late Tuesday, up 5 percent on its financial results.This article was updated with new information on October 17, 2007. Technology Industry