Intel Corp. on Wednesday issued financial report for the second quarter of FY2013. The company’s sales, profit, gross margin and a number of other results dropped year-over-year, but slightly improved from the previous quarter. Although Intel launched numerous new products in Q2 2013, declines in PC sales and other factors have hurt the company considerably.
"In the second quarter, we delivered on our quarterly outlook and made several key product announcements. In my first two months as CEO, I have listened to a wide variety of views about Intel and our industry from customers, employees and my leadership team and I am more confident than ever about our opportunity as a company," said Brian Krzanich, chief executive officer of Intel.
For the second quarter of FY2013 the world’s largest chipmaker reported second-quarter revenue of $12.8 billion, operating income of $2.7 billion, net income of $2.0 billion and EPS of $0.39. The company generated approximately $4.7 billion in cash from operations, paid dividends of $1.1 billion, and used $550 million to repurchase 23 million shares of stock.
"Looking ahead, the market will continue buying a wide range of computing products. Intel Atom and Core processors and increased SOC integration will be Intel's future. We will leave no computing opportunity untapped. To embrace these opportunities, I have made it Intel's highest priority to create the best products for the fast growing ultra-mobile market segment," added Mr. Krzanich.
Q2 key financial information and business unit trends:
- PC Client Group revenue of $8.1 billion, up 1.4% sequentially and down 7.5% year-over-year.
- Data Center Group revenue of $2.7 billion, up 6.1% sequentially and flat year-over-year.
- Other Intel Architecture Group revenue of $942 million, down 3.7% sequentially and down 15.0% year-over-year.
- Gross margin of 58%, up 2%age points sequentially and down 5%age points year-over-year.
- R&D plus MG&A spending of $4.7 billion, in line with the company's expectation of approximately $4.7 billion.
- Tax rate of 26%.
Intel now expects Q3 FY2013 revenue of $13.5 billion, plus or minus $500 million; gross margin of 61% ± 2%; R&D plus MG&A spending of ~$4.8 billion; amortization of acquisition-related intangibles: approximately $70 million; impact of equity investments and interest and other: approximately $400 million net gain; depreciation of approximately $1.7 billion.