Intel Reports Second-Quarter Revenue of $13.5 Billion
- Revenue of $13.5 billion, up 3 percent year-over-year and consistent with outlook
- GAAP gross margin of 58.9 percent and non-GAAP gross margin of 61.8 percent exceeded outlook by almost a point
- Generated approximately $3.8 billion in cash from operations, repurchased $804 million in stock, paid $1.2 billion in dividends with a current yield of about 3 percent^^
- Restructuring initiative solidly on-track, accelerating Intel’s transformation to a company powering the cloud and billions of smart, connected devices
SANTA CLARA, Calif., July 20, 2016 — Intel Corporation today reported second-quarter GAAP revenue of $13.5 billion, operating income of $1.3 billion, net income of $1.3 billion and EPS of 27 cents. Intel reported non-GAAP operating income of $3.2 billion, net income of $2.9 billion and EPS of 59 cents. The company generated approximately $3.8 billion in cash from operations, paid dividends of $1.2 billion, and used $804 million to repurchase 26 million shares of stock.
“Second-quarter revenue matched our outlook and profitability was better than we expected,” said Brian Krzanich, Intel CEO. “In addition, our restructuring initiative to accelerate Intel’s transformation is solidly on-track. We’re gaining momentum heading into the second half. While we remain cautious on the PC market, we’re forecasting growth in 2016 built on strength in data center, the Internet of Things and programmable solutions.”
Q2 Key Business Unit Trends*
Client Computing Group revenue of $7.3 billion, down 3 percent sequentially and down 3 percent year-over-year
Data Center Group revenue of $4.0 billion, up 1 percent sequentially and up 5 percent year-over-year
Internet of Things Group revenue of $572 million, down 12 percent sequentially and up 2 percent year-over-year
Non-Volatile Memory Solutions Group revenue of $554 million, down 1 percent sequentially and down 20 percent year-over-year
Intel Security Group revenue of $537 million, flat sequentially and up 10 percent year-over-year
Programmable Solutions Group revenue of $465 million, up 30 percent sequentially. Note the comparable period did not include $99 million of revenue as a result of acquisition-related adjustments.
* The first quarter of 2016 had 14 weeks of business versus the typical 13 weeks, as the company realigned its fiscal year with the calendar year.
Intel’s Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures, strategic investments and other significant transactions that may be completed after July 20.
The acquisition of Altera was completed in early fiscal year 2016. As a result of the Altera acquisition, we have acquisition-related charges that are primarily non-cash. Our guidance for the third quarter and full-year 2016 include both GAAP and non-GAAP estimates. Reconciliations between these GAAP and non-GAAP financial measures are included below.
For additional information regarding Intel’s results and Business Outlook, please see the CFO commentary at:www.intc.com/results.cfm.
Status of Business Outlook
Intel’s Business Outlook is posted on intc.com and may be reiterated in public or private meetings with investors and others. The Business Outlook will be effective through the close of business on September 16 unless updated earlier; except that the Business Outlook for amortization of acquisition-related intangibles, impact of equity investments and interest and other, restructuring charges, and tax rate, will be effective only through the close of business on July 27. Intel’s Quiet Period will start from the close of business on September 16 until publication of the company’s third-quarter earnings release, scheduled for October 18. During the Quiet Period, all of the Business Outlook and other forward-looking statements disclosed in the company’s news releases and filings with the SEC should be considered as historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.Click here for reuse options!
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