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Intel Reports Second-Quarter Revenue of $13.5 Billion

News Summary:

  • 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.

GAAP Financial Comparison
Quarterly Year-Over-Year

 

Q2 2016

Q2 2015

vs. Q2 2015

Revenue

$13.5 billion

$13.2 billion

up 3%

Gross Margin

58.9%

62.5%

down 3.6 points

R&D and MG&A

$5.2 billion

$5.0 billion

up 2%

Operating Income

$1.3 billion

$2.9 billion

down 54%

Tax Rate

20.4%

9.3%

up 11.1 points

Net Income

$1.3 billion

$2.7 billion

down 51%

Earnings Per Share

27 cents

55 cents

down 51%

 

 

Non-GAAP Financial Comparison
Quarterly Year-Over-Year

 

Q2 2016

Q2 2015

vs. Q2 2015

Revenue

$13.5 billion ^

$13.2 billion ^

up 3%

Gross Margin

61.8%

63.1%

down 1.3 points

R&D and MG&A

$5.2 billion ^

$5.0 billion ^

up 2%

Operating Income

$3.2 billion

$3.3 billion

down 2%

Net Income

$2.9 billion

$3.1 billion

down 6%

Earnings Per Share

59 cents

62 cents

down 5%

 

 

GAAP Financial Comparison
Quarterly Sequential

 

Q2 2016

Q1 2016

vs. Q1 2016

Revenue

$13.5 billion

$13.7 billion

down 1%

Gross Margin

58.9%

59.3%

down 0.4 points

R&D and MG&A

$5.2 billion

$5.5 billion

down 6%

Operating Income

$1.3 billion

$2.6 billion

down 49%

Tax Rate

20.4%

18.4%

up 2.0 points

Net Income

$1.3 billion

$2.0 billion

down 35%

Earnings Per Share

27 cents

42 cents

down 36%

 

 

Non-GAAP Financial Comparison
Quarterly Sequential

 

Q2 2016

Q1 2016

vs. Q1 2016

Revenue

$13.5 billion ^

$13.8 billion

down 2%

Gross Margin

61.8%

62.7%

down 0.9 points

R&D and MG&A

$5.2 billion ^

$5.4 billion

down 4%

Operating Income

$3.2 billion

$3.3 billion

down 2%

Net Income

$2.9 billion

$2.6 billion

up 9%

Earnings Per Share

59 cents

54 cents

up 9%


Intel Corporation

Symbol: INTC
35.15 4:00 PM ET
08/24/16
-0.25 (-0.71%)
Volume 16.34 B
Market Cap 166.26 B
52 Week High 35.93
52 Week Low 24.87

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