by Anton Shilov
01/16/2014 | 10:10 PM
Intel Corp. on Thursday reported its financial results for the fourth quarter of 2013 and for the full year. Since demand for personal computers was slow throughout the most of 2013, the company’s sales declined 1% compared to the previous year. Fortunately for the chip giant, its datacenter products were in high demand. Moreover, in Q4 the situation with client chips stabilized as well.
"We had a solid fourth quarter with signs of stabilization in the PC segment and financial growth from a year ago. We have built a strong foundation for our business by bringing innovation to the market more quickly across a wide range of computing platforms. For example, at CES, we demonstrated multiple devices that weren’t on our roadmap six months ago," said Brian Krzanich, chief executive officer of Intel.
For the fourth quarter, Intel posted revenue of $13.8 billion, operating income of $3.5 billion, net income of $2.6 billion, and EPS of 51 cents. The company generated approximately $6.2 billion in cash from operations, paid dividends of $1.1 billion, and used $528 million to repurchase 22 million shares of stock.
Intel claims that in the fourth quarter of 2013 the PC market stabilized and even demand for its client chips increased. Thanks to new Bay Trail-T family of Atom-branded system-on-chips for tablets, sales of solutions for ultra-mobile products also got higher. Intel’s data center business posted another year of growth and continued to benefit from the build out of the cloud and, robust product lineup and lack of competition from companies like AMD that used to rival Intel with their high-performance offers.
For the fourth quarter of 2013, Intel reported revenue of $13.8 billion, up 3% quarter over quarter and also 3% from a year ago. Combined PC client group and data center group platform volumes were up 3% when compared to the third quarter. Platform average selling prices were approximately flat when compared to the third quarter.
Intel full-year revenue was $52.7 billion, operating income of $12.3 billion, net income of $9.6 billion and EPS of $1.89. The company generated approximately $20.9 billion in cash from operations, paid dividends of $4.5 billion, and used $2.1 billion to repurchase 94 million shares of stock.
Revenue for the whole year 2013 was 1% from a year ago. Combined PC client group and data center group platform volume was down 3% from a year ago. Platform average selling prices were up 2% from 2012.
For the first quarter of this year Intel expects revenue to be $12.8 billion ± $500 million. The midpoint of this range – $12.8 billion – is down 7% from Q4 2014, which is normal seasonal drop for Q1. Moreover, $12.8 billion is marginally up from Intel’s Q1 FY2013 revenue of $12.6 billion. The chipmaker projects flat sales this year compared to 2013.