intel

Nick Knupffer / IntelPR

Enterprise


Shares of Intel are falling after hours by more than three percent after its results fell a penny short of what analysts were expecting.

Intel reported a 51 cents per-share profit on revenue of $13.8 billion. Revenue was slightly better than expectations. Intel’s gross margin, a closely watched indicator of its profitability, was 62 percent.

Looking ahead, Intel said that in the coming quarter it expects sales of $12.8 billion and a gross margin of 60 percent, plus or minus a few points. That’s more or less in line with what was expected. For the year, it said it expects sales of $53.2 billion, which is a slight improvement from the $52.7 billion it reported for 2013. It expects its gross margin to be about the same as the 59.8 percent it reported in 2013. It said it expects $11 billion, plus or minus a half billion, in capital spending this year.

Sales of chips into PCs held their own at $8.6 billion, more or less flat from the year-ago period. Sales into the data center at $3 billion were up eight percent.

In a statement, CEO Brian Krzanich said the company is seeing “signs of stabilization” in the PC market. “We’ve built a strong foundation for our business by bringing innovation to the market more quickly across a wide range of computing platforms. For example, at CES, we demonstrated multiple devices that weren’t on our roadmap six months ago,” he said.

Here’s the original press release; a conference call gets under way shortly.

Intel Reports Full-Year Revenue of $52.7 Billion, Net Income of $9.6 Billion

Generates $21 Billion in Cash from Operations

Reports Fourth-Quarter Revenue of $13.8 Billion

Operating income of $3.5 billion, up 12 percent year-over-year
EPS of 51 cents, up 6 percent year-over-year
PC Client Group revenue of $8.6 billion, flat year-over-year
Data Center Group revenue of $3.0 billion, up 8 percent year-over-year

SANTA CLARA, Calif., January 16, 2014 — Intel Corporation today reported full-year revenue of $52.7 billion, operating income of $12.3 billion, net income of $9.6 billion and EPS of $1.89. The company generated approximately $20.9 billion in cash from operations, paid dividends of $4.5 billion, and used $2.1 billion to repurchase 94 million shares of stock.

For the fourth quarter, Intel posted revenue of $13.8 billion, operating income of $3.5 billion, net income of $2.6 billion, and EPS of 51 cents. The company generated approximately $6.2 billion in cash from operations, paid dividends of $1.1 billion, and used $528 million to repurchase 22 million shares of stock.

“We had a solid fourth quarter with signs of stabilization in the PC segment and financial growth from a year ago,” said Intel CEO Brian Krzanich. “We’ve built a strong foundation for our business by bringing innovation to the market more quickly across a wide range of computing platforms. For example, at CES, we demonstrated multiple devices that weren’t on our roadmap six months ago.”

Full-Year 2013 Key Financial Information and Business Unit Trends

PC Client Group revenue of $33.0 billion, down 4 percent from 2012.

Data Center Group revenue of $11.2 billion, up 7 percent from 2012.

Other Intel architecture operating segments revenue of $4.1 billion, down 7 percent from 2012.
Q4 Key Financial Information and Business Unit Trends

PC Client Group revenue of $8.6 billion, up 2 percent sequentially and flat year-over-year.
Data Center Group revenue of $3.0 billion, up 3 percent sequentially and up 8 percent year-over-year.

Other Intel® architecture operating segments revenue of $1.1 billion, up 4 percent sequentially and up 9 percent year-over-year. Gross margin of 62.0 percent, 1 percentage point above the midpoint of the company’s prior expectation of 61 percent.

R&D plus MG&A spending of $4.8 billion, slightly above the company’s prior expectation of approximately $4.7 billion. Tax rate of 26 percent versus the company’s prior expectation of 25 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 January 16.

Full-Year 2014

Revenue: approximately flat.

Gross margin percentage: 60 percent, plus or minus a few percentage points.

R&D plus MG&A spending: approximately $18.6 billion.

Amortization of acquisition-related intangibles: approximately $300 million.

Depreciation: approximately $7.4 billion.

Tax rate: approximately 27 percent.

Full-year capital spending: $11.0 billion, plus or minus $500 million.

Q1 2014

Revenue: $12.8 billion, plus or minus $500 million.

Gross margin percentage: 59 percent, plus or minus a couple of percentage points.

R&D plus MG&A spending: approximately $4.8 billion.

Restructuring and asset impairment charges: approximately $200 million.

Amortization of acquisition-related intangibles: approximately $70 million.

Impact of equity investments and interest and other: approximately $25 million.

Depreciation: approximately $1.7 billion.




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