Intel Reports Revenues Of $13.8 Billion For Q2, Record Processor Shipments

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Intel has reported revenues of $13.8 billion (£7.5 billion) giving them a net income of $2.8 billion for the second quarter of 2014.

The interesting point about this is that there was “PC Client Group revenue of $8.7 billion, up 9 percent sequentially and up 6 percent year-over-year”, which means that Intel was getting better than expected sales in the desktop market. Couple that with the fact that in this last quarter they set a new record for the number of microprocessors shipped in a single quarter, and it’s not hard to see why they made that net income of $2.8 billion. But does this mean that the desktop market is not quite as in decline as they thought? Their Data Centre Group also had reported revenue of $3.5 billion – an increase of 14% on the first quarter of 2014.

What’s also interesting, is the comparison compared to the last quarter, and the same quarter last year (Q1 2014 and Q2 2013 respectively). Revenue was up 8% in Q2 2014 compared to Q1 2014 and up 8% compared to the same quarter last year, so this means that Intel’s revenue has been either maintained or increased, with gross margins and net income also being relatively consistent. This shows just how dominant Intel are in the market and how they are being smart with their money and making sure to keep profits coming in and development moving forward. That is why they have a predicted revenue of $14.4 billion (£8.4 billion) and a 66% profit margin in Q3 2014 (compared to 64.5% in Q2 2014), and are also looking to spend $20 million on restructuring changes. Stacy J. Smith, Intel CFO said “This change in our capital structure is the continuation of a multi-year focus on creating value and returning cash to our shareholders, and reinforces our confidence in the business”, and indeed they have every right to be confident in their business, and as we move towards 14nm technology and with it Broadwell , Intel will be around for a while yet.

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