Intel Reports Record Earnings For First Quarter
Though Q1 is usually a bit of a coin toss for Intel, this year’s the company outperformed last year’s by over $1 billion, the company reported during it’s quarterly earnings call. Despite some stiff opposition from AMD and its new Ryzen CPU, Intel still had a revenue of $14.8 billion, up from $13.7 billion a year ago, but down when compared to Q4 2016’s $16.4 billion. These figures amount to a net revenue of $3.0 billion over Q1, which in turn translates to earnings per share of $0.61.
Gross margin for Q1 was 61.8 percent, 2.5 percent more than a year ago. The biggest earner for Intel was its client computing group, which raked in $7.976 billion, up just under six percent compared year-over-year. Runner up was the data center group, at $4.232 billion in earnings and offering much the same improvement in percentages. Together these two sections of the massive corporation are responsible for the lion’s share of income, though other, smaller groups should not be underestimated.
The non-volatile memory solutions group, for instance, earned $866 million for itself — up a staggering 55 percent compared to 2016 Q1 and six percent ot Q4, for which Intel has the Optane to thank — while Internet of Things revenue was $721 million, up 10 percent compared to last year. Intel Security — a section that Intel is divesting itself from –suffered a small loss and reported $534 million. The programmable solutions group, finally, was up nearly 20 percent to $425 million.
Intel is forecasting revenue of $14.4 billion for next quarter, with a margin of around 60 percent. Keeping the above figures in mind, it seems that this may very well be a reasonable assumption now that it’s clear Intel has, to a certain extent, weathered the Ryzen storm. Time will tell if shareholders will walk away as happy as they did today, but the signs are good.
Fergus has been tinkering with computers since he was a kid and likes to put a stop to parties by listing the specs of all the digital devices in the room. It's best not to let him near your computer since he'll take it apart and may not put it back together again before he leaves.