Intel has faced a tough quarter or two as of late, but it’s seeing a bit of sunshine today. The chip maker just posted third quarter earnings that largely match happier results from a year ago, generating $3 billion in net profit based on revenue of $13.5 billion. The performance is also a noticeable improvement over the second quarter, with revenue and profit respectively growing by five and 48 percent. There are problems when you break down the earnings by division, however. While Intel’s Data Center Group is thriving with a 12.2 percent year-to-year revenue increase, its core PC Client and Other Intel architecture groups both saw annual drops of 3.5 percent and 9.3 percent. Haswell processors have provided only limited help to a computer market that’s still struggling, Intel says. The short-term future isn’t going to be much brighter, for that matter — the crew in Santa Clara predicts just a slight increase in revenue for the next quarter, to $13.7 billion. It’s a good thing that Intel is exploring new technology, then. by engadget
Intel Reports Third-Quarter Revenue of $13.5 Billion, Net Income of $3.0 Billion
* Total revenue up 5 percent sequentially, flat year-over-year
* Record Data Center Group revenue of $2.9 billion, up 12 percent year-over-year
* Launched 4th Generation Intel® Core™ products enabling fanless, innovative tablet and 2 in 1 designs
* More than forty 22nm products introduced for ultra-mobile device, networking, storage, and server market segments
SANTA CLARA, Calif., October 15, 2013 — Intel Corporation today reported third-quarter revenue of $13.5 billion, operating income of $3.5 billion, net income of $3.0 billion and EPS of $0.58. The company generated approximately $5.7 billion in cash from operations, paid dividends of $1.1 billion, and used $536 million to repurchase 24 million shares of stock.
“The third quarter came in as expected, with modest growth in a tough environment,” said Intel CEO Brian Krzanich. “We’re executing on our strategy to offer an increasingly broad and diverse product portfolio that spans key growth segments, operating systems and form factors. Since August we have introduced more than 40 new products for market segments from the Internet-of-Things to datacenters, with an increasing focus on ultra-mobile devices and 2 in 1 systems.”
Q3 Key Financial Information and Business Unit Trends
* PC Client Group revenue of $8.4 billion, up 3.5 percent sequentially and down 3.5 percent year-over-year.
* Data Center Group revenue of $2.9 billion, up 6.2 percent sequentially and up 12.2 percent year-over-year.
* Other Intel® architecture operating segments revenue of $1.1 billion, up 13.3 percent sequentially and down 9.3 percent year-over-year.
* Gross margin of 62.4 percent, 1.4 percentage points above the midpoint of the company’s prior expectation of 61 percent.
* R&D plus MG&A spending of $4.7 billion, slightly below the company’s prior expectation of approximately $4.8 billion.
* Tax rate of 25 percent versus the company’s prior expectation of 26 percent.
Intel’s Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures or other investments that may be completed after October 15.
* Revenue: $13.7 billion, plus or minus $500 million.
* Gross margin percentage: 61 percent, plus or minus a couple of percentage points.
* R&D plus MG&A spending: approximately $4.7 billion.
* Amortization of acquisition-related intangibles: approximately $70 million.
* Impact of equity investments and interest and other: approximately zero.
* Depreciation: approximately $1.7 billion.
* Restructuring and asset impairment charges: approximately $100 million.
* Tax rate: approximately 25 percent.
* Full-year capital spending: $10.8 billion, plus or minus $300 million.
For additional information regarding Intel’s results and Business Outlook, please see the CFO commentary at: http://www.intc.com/results.cfm.