Intel has reported second-quarter revenue of $13,8-billion, operating income of $3,8-billion, net income of $2,8-billion and EPS of $0.55. The company generated approximately $5,5-billion in cash from operations, paid dividends of $1,1-billion, and used $2,1-billion to repurchase 74-million shares of stock.
“Our second-quarter results showed the strength of our strategy to extend the reach of Intel technology from the data centre to PCs to the Internet of Things,” says Intel CEO Brian Krzanich.
“With the ramp of our Baytrail SoC family, we have expanded into new segments such as Chrome-based systems, and we are on track to meet our 40-million unit tablet goal. In addition, we hit an important qualification milestone for our upcoming 14nm Broadwell product, and expect the first systems to be on shelves during the holidays.”
Intel announced that it intends to return more cash to shareholders by lowering its cash balance further through increased share repurchases. The board of directors authorized an increase of $20-billion to its share repurchase program and the company is forecasting share repurchases of approximately $4-billion in the third quarter, with additional share repurchases in the fourth quarter.
Over the last decade Intel has returned almost $90-billion to shareholders through dividends and share repurchases.
“This change in our capital structure is the continuation of a multi-year focus on creating value and returning cash to our shareholders, and reinforces our confidence in the business,” says Stacy Smith, Intel chief financial officer and executive vice-president.
Key business unit trends during the second quarter include:
* PC Client Group revenue of $8,7-billion, up 9% sequentially and up 6% year-over-year.
* Data Centre Group revenue of $3,5-billion, up 14% sequentially and up 19% year-over-year.
* Internet of Things Group revenue of $539-million, up 12% sequentially and up 24% year-over-year.
* Mobile and Communications Group revenue of $51-million, down 67% sequentially and down 83% year-over-year.
* Software and services operating segments revenue of $548-million, down 1% sequentially and up 3% year-over-year.
Intel expects third quarter revenue of about $14,4-billion, at about 66% gross margin percentage. For the full year, it is anticipating growth of about 5% – higher than previous expectations.
