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Company cites “market softness” as they announce losses in key company results.
Intel Corporation today has first-quarter revenue of $12.6 billion, operating income of $2.5 billion, net income of $2.0 billion and EPS of $0.40. The company generated approximately $4.3 billion in cash from operations, paid dividends of $1.1 billion, and used $533 million to repurchase 25 million shares of stock.
“Amidst market softness, Intel performed well in the first quarter and I’m excited about what lies ahead for the company,” said Paul Otellini, Intel president and CEO. “We shipped our next generation PC microprocessors, introduced a new family of products for micro-servers and will ship our new tablet and smartphone microprocessors this quarter.
“We are working with our customers to introduce innovative new products across multiple operating systems. The transition to 14nm technology this year will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace” said Mr Otellini.
Announcing their results Intel cited losses across their operation:
- PC Client Group revenue of $8.0 billion, down 6.6 percent sequentially and down 6.0 percent year-over-year.
- Data Center Group revenue of $2.6 billion, down 6.9 percent sequentially and up 7.5 percent year-over-year.
- Other Intel® Architecture Group revenue of $1.0 billion, down 3.9 percent sequentially and down 9.0 percent year-over-year.
- Gross margin of 56 percent, down 2 percentage points sequentially and down 8 percentage points year-over-year.
- R&D plus MG&A spending of $4.5 billion, in line with the company’s expectation of approximately $4.6 billion.
- Tax rate of 16 percent.
In a statement the company provided their analysis of what they believed would happen during 2013:
- Revenue: low single-digit percentage increase, unchanged from prior expectations.
- Gross margin percentage: 60 percent, plus or minus a few percentage points, unchanged from prior expectations.
- R&D plus MG&A spending: $18.9 billion, plus or minus $200 million, unchanged from prior expectations.
- Amortization of acquisition-related intangibles: approximately $300 million, unchanged from prior expectations.
- Depreciation: $6.8 billion, plus or minus $100 million, unchanged from prior expectations.
- Tax Rate: approximately 27 percent for each of the remaining quarters of the year.
- Full-year capital spending: $12.0 billion, plus or minus $500 million, down $1.0 billion from prior expectations.
