by Anton Shilov
10/15/2013 | 11:42 PM
Intel Corp. on Tuesday reported financial results for the third quarter of fiscal 2013. The company’s revenue was flat compared to the same quarter a year ago and slightly up compared to the second quarter of this year. Soft sales of client computers as people buy more smartphones and media tablets continue to threat PC CPU business of the world’s largest chipmaker. However, shipments of server processors continue to increase.
"The third quarter came in as expected, with modest growth in a tough environment. We are executing on our strategy to offer an increasingly broad and diverse product portfolio that spans key growth segments, operating systems and form factors. Since August we have introduced more than 40 new products for market segments from the Internet-of-Things to datacenters, with an increasing focus on ultra-mobile devices and 2 in 1 systems," said Brian Krzanich, chief executive officer of Intel.
Intel reported third-quarter revenue of $13.5 billion, operating income of $3.5 billion, net income of $3.0 billion and EPS of $0.58. The company generated approximately $5.7 billion in cash from operations, paid dividends of $1.1 billion, and used $536 million to repurchase 24 million shares of stock.
Revenue of $13.5 billion was up 5% sequentially and flat from a year ago. PC and data center platform volumes were up 2% when compared to the second quarter. Platform average selling prices were up 1% when compared to the second quarter. Intel’s basic revenue split looks as follows:
Spending for R&D and MG&A was $4.7 billion, flat from the second quarter and down ~$100 million from the outlook provided in July. R&D and MG&A as a percentage of revenue was 35%, down from the second quarter. Depreciation was $1.7 billion, in line with expectations. Restructuring and asset impairment charges in the third quarter were $124 million. These charges were a result of several announced management actions to reduce workforce, exit certain businesses and close facilities in response to the current business environment and to better align resources. Amortization of acquisition related intangibles was $74 million.
For the fourth quarter of FY2013 Intel expects its revenue is expected to be $13.7 billion ± $500 million; the midpoint of this range is up 2% from the third quarter. Gross margin in the fourth quarter is expected to be 61% ± 2%, down 1.4% from the third quarter. Spending for R&D and MG&A in the fourth quarter is expected to be approximately $4.7 billion, flat from the third quarter. Depreciation is forecasted to be approximately $1.7 billion, flat from the third quarter. Restructuring and asset impairment charges are forecasted to be approximately $100 million. Amortization of acquisition-related intangibles is forecasted to be approximately $70 million.