Intel boasts of record revenue, high profits
April 28, 2017 | 10:26
Companies: #amd #intel
Intel has boasted of a record first financial quarter, hitting revenue of $14.8 billion and a net income of $3 billion on the back of growth in almost all areas, while company head Brian Krzanich downplayed the threat from rival AMD's Ryzen processors.
In financial figures released late last night, Intel showed impressive growth: Revenue of $14.8 billion was up eight percent over the same quarter last year, while an increase in the average selling price of its components saw its profit margin boosted from 59.3 percent to a whopping 61.8 percent for a net income of $3 billion - up a ridiculous 45 percent year-on-year. The majority of that, as always, came from Intel's Client Computing Group responsible for mainstream consumer processors and related products, which generated $8 billion in revenue at a six percent increase year-on-year.
The enterprise-centric Data Centre Group, meanwhile, contributed $4.2 billion, also up six percent, while the company's burgeoning Internet of Things (IoT) Group saw revenue jump 11 percent to $721 million. The company's Non-Volatile Memory Solutions Group, responsible for the recently launched Optane accelerators as well as traditional SSDs, saw the highest revenue gain at 55 percent to $866 million, while the Programmable Solutions Group grew 18 percent to $425 million. Only Intel Security saw a decline, dropping a single percent to $534 million.
'The first quarter was another record quarter, coming off a record 2016. We continued to grow our company, shipped our disruptive new Optane memory technology, and positioned Intel to lead in new areas like artificial intelligence and autonomous driving,' crowed Intel chief executive Brian Krzanich. 'The ASP strength we saw across nearly every segment of the business demonstrates continued demand for high-performance computing, which will only increase with the explosion of data.'
Heading into the next quarter, though, Krzanich warned that average selling prices may drop but denied it had anything to do with the launch of rival AMD's Zen-architecture Ryzen processors. 'If you take a look at what we've forecasted for the remainder of the year, we've forecasted a slight decline in ASPs as we move through the year,' Krzanich explained during the question-and-answer part of the company's earnings call. 'From a competition standpoint, we're not seeing anything unusual right now as far as [...] there's always some level of competition in this market, and I'd tell you for Q1 and our forecast for Q2, we're not seeing anything out of the ordinary from what we normally see.'
As for the company's upcoming product launches, Intel would only talk in broad strokes: 'We feel great about our annual cadence of product innovations with new product launches planned this year,' Intel's chief financial officer Bob Swan told press and analysts during the call, 'including Skylake for data centre, eighth-generation Core, 64-tier 3D NAND SSDs, and further extensions to our Optane product line.'