Intel profit falls as Q3 forecast is lowered

Intel profit falls as Q3 forecast is lowered

With a new CEO at the helm, analysts could be extra curious about the last three months at Intel.

Intel has had a jam-packed quarter with buzz surrounding a potential Internet TV service, a slew of new
hardware bits, and a major shuffle
at the C-level.
Now it’s time to see how all of those changes affected the balance sheet.
The chipmaker reported a second-quarter net income of $2 billion with earnings of 40 cents per share (statement). Non-GAAP earnings were 39 cents per share on a revenue of $12.8 billion.
Wall Street was looking for earnings of 39 cents per share on a revenue of $12.9 billion.

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At the helm of the microprocessor giant for less than a quarter, CEO Brian Krzanich reflected on his new role as leader of Intel in a statement:

In my first two months as CEO, I have listened to a wide variety of
views about Intel and our industry from customers, employees and my
leadership team and I am more confident than ever about our opportunity
as a company. Looking ahead, the market will continue buying a wide
range of computing products. Intel Atom and Core processors and
increased SOC integration will be Intel’s future. We will leave no
computing opportunity untapped. To embrace these opportunities, I’ve
made it Intel’s highest priority to create the best products for the
fast growing ultra-mobile market segment.

Some of the more notable debuts from the quarter included the Silvermont
mobile architecture, the fourth generation of the flagship Core
processors, and the integration of Intel LTE and Atom processor
technology onto the 10.1-inch edition of the Samsung Galaxy Tab 3.
From a more bird’s eye view, here’s a breakdown of how Intel’s top three units did this quarter:
  • PC Client: Revenue of $8.1 billion, up 1.4 percent sequentially and down 7.5 percent annually.
  • Data Centers: Revenue of $2.7 billion, up 6.1 percent sequentially and flat annually.
  • Architecture: Revenue of $942 million, down 3.7 percent sequentially and down 15 percent annually.
Intel cut its outlook, promising third-quarter revenue of $13.5
billion, plus or minus $500 million. The annual outlook was also trimmed
down to remain flat year over year, which Intel admitted is “down from
prior expectations of a low single-digit percentage increase.” 
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