- Quarterly revenue of $14.5 billion, above the midpoint of outlook; gross margin of 63 percent, consistent with outlook
- Quarterly revenue approximately flat year-over-year, with growth in the data center, Internet of things (IoT) and non-volatile memory businesses offsetting lower client revenue
- Results show customer enthusiasm for 6th Gen Intel® Core™ processors
Intel Corporation today reported third-quarter revenue of $14.5 billion, operating income of $4.2 billion, net income of $3.1 billion and EPS of 64 cents. The company generated approximately $5.7 billion in cash from operations, paid dividends of $1.1 billion, and used $1.0 billion to repurchase 36 million shares of stock.
“We executed well in the third quarter and delivered solid results in a challenging economic environment,” said Brian Krzanich, Intel CEO. “The quarter demonstrates Intel innovation in action. Customers are excited about our new 6th Gen Intel Core processor, and we introduced our breakthrough 3D XPoint™ technology, the industry’s first new memory category in more than two decades.”
Q3 Key Business Unit Trends
- Client Computing Group revenue of $8.5 billion, up 13 percent sequentially and down 7 percent year-over-year
- Data Center Group revenue of $4.1 billion, up 8 percent sequentially and up 12 percent year-over-year
- Internet of Things Group revenue of $581 million, up 4 percent sequentially and up 10 percent year-over-year
- Software and services operating segments revenue of $556 million, up 4 percent sequentially and flat year-over-year
Intel’s Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures, strategic investments and other significant transactions that may be completed after October 13.
- Revenue: $14.8 billion, plus or minus $500 million.
- Gross margin percentage: 62 percent, plus or minus a couple of percentage points.
- R&D plus MG&A spending: approximately $5.0 billion.
- Restructuring charges: approximately $25 million.
- Amortization of acquisition-related intangibles: approximately $70 million.
- Impact of equity investments and interest and other: approximately zero.
- Depreciation: approximately $1.9 billion.
- Tax rate: approximately 25 percent.
- Full-year capital spending: $7.3 billion, plus or minus $500 million.
For additional information regarding Intel’s results and Business Outlook, please see the CFO commentary at: www.intc.com/results.cfm.