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News Article

Intel Quarterly Revenues Affected By Weak Computing Market

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Intel Corporation has reported quarterly revenue of $13.5 billion, operating income of $3.8 billion, net income of $3.0 billion and EPS of $0.58.

The company generated approximately $5.1 billion in cash from operations, paid dividends of $1.1 billion and used $1.2 billion to repurchase stock.

"Our third-quarter results reflected a continuing tough economic environment," says Paul Otellini, Intel president and CEO. "The world of computing is in the midst of a period of breakthrough innovation and creativity. As we look to the fourth quarter, we're pleased with the continued progress in Ultrabooks and phones and excited about the range of Intel-based tablets coming to market."

The PC Client Group revenue totalled $8.6 billion, which was flat sequentially and down 8 percent year-over-year.

The Data Centre Group revenue of $2.7 billion, was down 5 percent sequentially and up 6 percent year-over-year.

Other Intel architecture group revenue amounted to $1.2 billion, up 6 percent sequentially and down 14 percent year-over-year.

Gross margin was 63.3 percent, 1.3 percentage points above the midpoint of the company's updated expectation of 62 percent.

R&D plus MG&A spending of $4.6 billion, remained unchanged. The tax rate of 24 percent was below the company's expectation of approximately 28 percent.

Business Outlook

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 16th.                                    

In the second quarter of 2012, Intel reorganised its smartphone, tablet, and mobile communication businesses within the other Intel architecture operating group. This was to enable the firm to move faster and with greater collaboration and synergies in the market segment for mobile devices.

As part of the reorganisation, the former Netbook and Tablet Group has been separated into the following new operating groups: Netbook Group, Tablet Group, and Service Provider Group.

What's more, the former Ultra-Mobility Group is now the Phone Group. The other Intel architecture operating group continues to include the Intelligent Systems Group and Intel Mobile Communications. The other Intel architecture operating group aggregation has not changed.

PC Client Group Notebook and Desktop Platform Key Drivers                   

Notebook platform average selling prices decreased 8 percent from Q3'11 and desktop platform volume decreased 6 percent from Q3'11.      

Notebook platform average selling prices decreased 6 percent from the first nine months of 2011 to the first nine months of 2012 while volumes increased 4 percent from the first nine months of 2011 to the first nine months of 2012.

Desktop platform volume decreased 3 percent from the first nine months of 2011 to the first nine months of 2012.

 

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