Home Update Intel Reports Q1 2020 Earnings: Another Strong Quarter For…

Intel Reports Q1 2020 Earnings: Another Strong Quarter For…

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Intel Reports Q1 2020 Earnings: Another Strong Quarter For...


Kicking off earnings season for the tech business, Intel yesterday night reported their monetary outcomes for the primary quarter of the yr. And, like just about each Intel quarter for the final couple of years, it was a doozy, with Intel as soon as once more recording rising revenues and a really wholesome revenue margin.

For the primary quarter of 2020, Intel reported $19.8B in income, a major enchancment over the year-ago quarter, and solely barely behind Intel’s record-breaking This autumn. As a results of this robust income, revenue was additionally very wholesome for the corporate, with Intel recording $5.7B in web revenue, a 43% soar over Q1’19. Meanwhile gross margins have been up Four proportion factors to 60.6%, pushing Intel again above their a lot revered 60% gross margin threshold.












Intel Q1 2020 Financial Results (GAAP)
  Q1’2020 This autumn’2019 Q1’2019
Revenue $19.8B $20.2B $16.1B
Operating Income $7.0B $6.8B $4.2B
Net Income $5.7B $6.9B $4.0B
Gross Margin 60.6% 58.8% 56.6%
Client Computing Group Revenue $9.8B -2% +14%
Data Center Group Revenue $7.0B -3% +43%
Internet of Things Revenue $1137M -2% +8%
Non-Volatile Memory Solutions Group $1.3B +8% +46%
Programmable Solutions Group $519M +3% +7%

Breaking issues down on a gaggle foundation, a lot of Intel’s inner reporting teams noticed double-digit progress over the year-ago quarter. Client computing income was up 14% to $9.8B, and information heart income was a fair larger winner with $7.0B in income, a 43% soar over the earlier yr. The vital progress within the information heart section comes as Intel noticed each larger common promoting costs and better volumes total, with ASPs and volumes rising by 13% and 27% respectively. Overall Intel attributes the info heart features to the corporate’s “broad strength” out there, although they did word that they’ve seen a 53% year-over-year enhance in income from cloud service suppliers.

As for consumer computing income, the largest features there got here from pocket book ASPs, which have been up 22% over the year-ago quarter. Other consumer metrics have been comparatively tame; pocket book volumes really slipped 3%, whereas on the desktop, ASPs have been up 4% whereas volumes have been down 4%. For Intel’s consumer group, the corporate is coming off of the second quarter of promoting Ice Lake laptops, with enhancing provide and enhancing serving to to drive these numbers. As nicely, Intel’s new Comet Lake-H CPUs have been not too long ago launched, which suggests these would have been delivery to OEMs in Q1 as nicely.

Rounding out Intel’s product portfolio, the corporate recorded smaller features for his or her Programable Solutions Group, in addition to their Internet of Things enterprise. Overall IoT was a combined bag: Mobileye income, which the corporate presents a separate breakout, was up 22% over the earlier yr, however the remainder of Intel’s IoT enterprise noticed a 3% drop in income. Finally, Intel’s storage group was a shocking winner, with document income pushing them to year-over-year progress of 46%, due to larger NAND ASPs and decrease unit prices.

Meanwhile, like most different tech corporations, the 800lb gorilla of the chipmaking world finds itself in an attention-grabbing place because the novel coronavirus pandemic has shuttered massive components of the world’s economies. For Q1, Intel believes they really benefitted considerably from the outbreak, as corporations and customers wanted to make previously-unplanned bought of laptops and different gear for working from house and distant studying. However because the pandemic continues, it’s more likely to begin impacting Intel’s gross sales in different methods, as idled enterprise received’t be making their standard purchases and expansions. As a outcome, Intel isn’t even…



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