updated 04:35 pm EDT, Wed July 17, 2013
Quarterly earnings meet Wall Street estimates, annual guidance unchanged
Intel Corporation today reported second-quarter revenue of $12.8 billion, operating income of $2.7 billion, net income of $2.0 billion and earnings per share of $0.39. The company generated approximately $4.7 billion in cash from operations, paid dividends of $1.1 billion, and used $550 million to repurchase 23 million shares of stock from shareholders through its previously-announced buyback plan.
Cited in the quarter, Intel reports "strong acceptance" of the Haswell fourth-generation Intel Core processors, and the new Silvermont architecture. In addition, the new Intel Atom and LTE solution will be used in the Galaxy Tab 3 10.1-inch tablet, and the success of Intel's "most significant management reorganizations in a decade" contributed to the company's bottom line this quarter.
"Looking ahead, the market will continue buying a wide range of computing products," Intel's new CEO Brian Krzanich said. "Intel Atom and Core processors and increased SOC integration will be Intel's future. We will leave no computing opportunity untapped. To embrace these opportunities, I've made it Intel's highest priority to create the best products for the fast growing ultra-mobile market segment."
Also notable for the quarter, Intel's PC Client Group reported revenue of $8.1 billion, up 1.4 percent sequentially but down 7.5 percent year-over-year. The Data Center Group claimed revenue of $2.7 billion, up 6.1 percent sequentially and flat year-over-year. Intel reported gross margin of 58 percent, up two percentage points sequentially and down five percentage points year-over-year.
For the third quarter, the company expects between $13 billion and $14 billion in revenue, with a 61 percent gross margin. Revenue is not expected to increase from the 2012 numbers, with a 59 percent overall gross margin percentage.