Kicking off one other earnings season for the tech business, we as soon as once more have Intel, who’s reporting their monetary outcomes for the second quarter of the yr. This is the primary full coronavirus-impacted quarter for the corporate and the tech business as an entire, however if you happen to had been trying solely at Intel’s outcomes, you wouldn’t know there’s a pandemic occurring: the corporate posted yet one more file quarter, delivering their highest Q2 revenues ever with a large revenue margin driving on high of that.
For the second quarter of 2020, Intel reported $19.7B in income, greater than $3B forward of their year-ago quarter, and solely barely behind Q1’s $19.8B in income. As a results of this robust income, revenue was additionally very wholesome for the corporate, with Intel recording $5.1B in web revenue, a 22% leap over Q2’19.
It is attention-grabbing to notice, nonetheless, that Intel’s famed gross margin took a reasonably sizable hit for the latest quarter. Intel recorded a gross margin of simply 53.3%, nicely under the 60% margin the corporate is thought for. This matter was briefly talked about within the firm’s earnings name, the place the larger-than-expected drop was labeled as being largely a timing merchandise, with Intel taking a success as they ramp up Tiger Lake. At the identical time, nonetheless, 10nm demand general is larger, which though shouldn’t be a foul downside to have, 10nm is dearer to construct on than Intel’s well-refined (and paid for) 14nm fabs.
| Intel Q2 2020 Financial Results (GAAP) | |||||
| Q2’2020 | Q1’2020 | Q2’2019 | |||
| Revenue | $19.7B | $19.8B | $16.5B | ||
| Operating Income | $5.7B | $7.0B | $4.6B | ||
| Net Income | $5.1B | $5.7B | $4.2B | ||
| Gross Margin | 53.3% | 60.6% | 59.8% | ||
| Client Computing Group Revenue | $9.5B | -3% | +7% | ||
| Data Center Group Revenue | $7.1B | +2% | +43% | ||
| Internet of Things Group Revenue | $816M | -8% | -32% | ||
| Mobileye Revenue | $146M | -43% | -27% | ||
| Non-Volatile Memory Solutions Group | $1.7B | +24% | +76% | ||
| Programmable Solutions Group | $501M | -3% | +2% | ||
Breaking issues down on a gaggle foundation, lots of Intel’s inner reporting teams have grown over the year-ago quarter, and a few fairly considerably. Client computing income was up 7% to $9.5B, whereas information heart income was the large winner when it comes to development, with $7.1B in income making for a 43% leap over the earlier yr. The vital development within the information heart section comes thanks partially to a giant leap in cloud service supplier income, which was up 47% year-over-year. That, in flip, was pushed partially by Intel’s recently-launched Cooper Lake Xeon processors, which has the main server suppliers biking in methods utilizing these new chips.
As for consumer computing income, the most important features there as soon as once more got here from pocket book gross sales, which have taken off within the face of the coronavirus pandemic. All-told, pocket book income is up 14% over Q2’19, whereas slower desktop gross sales have induced desktop gross sales to drop by 14%. The web result’s that PC gross sales had been up 2% year-over-year, with desktop and pocket book ASPs ticking up barely as nicely.
Rounding out Intel’s product portfolio, the corporate’s Non-Volatile Memory Solutions Group was the opposite huge winner for the corporate. Revenue there reached $1.7B, 76% larger than Q2’19, and 24% over final quarter. This was pushed by development in each ASPs and quantity (bit development), permitting Intel to guide extra income at each degree. The Programable Solutions Group, alternatively, noticed a really delicate 2% enhance in income.
Unfortunately for Intel, their Internet of Things sub-groups didn’t fare very nicely, partially attributable to higher publicity to the coronavirus pandemic. The IoT Group itself noticed revenues fall 32% from Q2’19, dropping to $816M. Meanwhile Mobileye was…
