updated 05:37 pm EDT, Tue April 16, 2013
Results unspectacular, but meet Wall Street estimates
Intel today reported calendar first-quarter revenue of $12.6 billion, operating income of $2.5 billion, net income of $2 billion and earnings per share of $0.40. The company generated approximately $4.3 billion in cash from operations, paid dividends of $1.1 billion to shareholders, and used $533 million to continue its stock buyback plan and reacquire 25 million shares of stock.
Highlights from the report include revenue from the PC Client group of $8 billion, down 6.6 percent from the prior quarter and down six percent year-over-year. The manufacturer's Data Center Group posted revenue of $2.6 billion, down 6.9 percent from the first quarter but up 7.5 percent year-over-year. As a matter of some concern to the company, gross margin fell two percentage points to 56 percent, making a loss of eight percentage points year-over-year.
The company expects revenue of $12.4 to $13.4 billion for the second quarter, with a slight climb of gross margin to 58 percent. Outlook for the full year is essentially unchanged, with a "low single-digit percentage increase" in revenue. The increase in margin is expected from Haswell products for sale, and written-off older inventory. Capital expenditure projections have been lowered by $1 billion as Intel is "taking advantage of the excess capacity on older-generation process technologies to take capacity offline and reuse more equipment and space for 14nm and beyond."