Intel 2019 January-March revenues flat at $16.1 billion
26 Apr 2019
Intel Corporation, the world’s largest semiconductor maker, has reported first-quarter (January-March 2019) revenue of $16.1 billion, flat year-over-year growth with its data-centric revenue declining 5 per cent and PC-centric revenue growing 4 per cent.
Santa Clara-California-based Intel said its first-quarter GAAP earnings-per-share (EPS) stood at $0.87, down 6 per cent YoY while non-GAAP EPS was up 2 per cent at $0.89.
Intel expects second-quarter revenue of $15.6 billion with GAAP EPS of $0.83 and non-GAAP EPS of $0.89.
For the full year 2019, Intel targets revenue of $69.0 billion, GAAP EPS of $4.14 and non-GAAP EPS of $4.35, which is down from January guidance.
"Results for the first quarter were slightly higher than our January expectations. We shipped a strong mix of high-performance products and continued spending discipline while ramping 10nm and managing a challenging NAND pricing environment. Looking ahead, we're taking a more cautious view of the year, although we expect market conditions to improve in the second half," said Bob Swan, Intel CEO.
"Our team is focused on expanding our market opportunity, accelerating our innovation and improving execution while evolving our culture. We aim to capitalize on key technology inflections that set us up to play a larger role in our customers’ success, while improving returns for our owners," he added.
In the first quarter, the company generated approximately $5.0 billion in cash from operations, paid dividends of $1.4 billion and used $2.5 billion to repurchase 49 million shares of stock.
In the first quarter, Intel achieved 4 per cent growth in the PC-centric business while data-centric revenue declined 5 per cent.
The PC-centric business (CCG) was up 4 per cent in the first quarter due to a strong mix of Intel's higher performance products and strength in gaming, large commercial and modem. Intel's first high-volume 10nm processor, code-named Ice Lake, remains on track to be in volume systems on retail shelves for the 2019 holiday selling season.
Collectively, Intel's data-centric businesses declined 5 per cent YoY in the first quarter. In the Data Centre Group (DCG), the cloud segment grew 5 per cent while the communications service provider segment declined 4 per cent and enterprise and government revenue declined 21 per cent.
First-quarter Internet of Things Group (IOTG) revenue grew 8 per cent YoY (19 per cent excluding Wind River1), and Mobileye achieved record first-quarter revenue of $209 million, up 38 per cent YoY as customer momentum continued.
Intel's memory business (NSG) was down 12 per cent YoY in a challenging pricing environment. Intel's Programmable Solutions Group (PSG) revenue was down 2 per cent YoY in the first quarter.
The first quarter marked the introduction of a broad, new portfolio of data-centric products from Intel featuring the 2nd-Generation Intel Xeon Scalable processor family with integrated Intel Deep Learning Boost (Intel DL Boost) for AI deep learning inferencing acceleration and support for Intel Optane DC persistent memory, the revolutionary technology that brings affordable, high-capacity persistent memory to Intel’s data-centric computing portfolio.
Intel also introduced more than 50 workload-optimized Intel Xeon processors, a 56-core, 12 memory channel Intel Xeon Platinum 9200 processor, and the new Intel Agilex line of 10nm-based FPGAs.
Intel's guidance for the second-quarter and full-year 2019 includes both GAAP and non-GAAP estimates. Reconciliations between these GAAP and non-GAAP financial measures are included below.
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 April 25, 2019. Actual results may differ materially from Intel’s Business Outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below.