updated 05:33 pm EDT, Tue October 15, 2013
As expected PC Client losses, but solid performance for Intel
US chipmaker Intel today reported third-quarter revenue of $13.5 billion, operating income of $3.5 billion, net income of $3 billion and earnings per share of $0.58. The company generated approximately $5.7 billion in cash from operations, paid dividends of $1.1 billion, and used $536 million to repurchase 24 million shares of stock.
"The third quarter came in as expected, with modest growth in a tough environment," said Intel CEO Brian Krzanich. "We're executing on our strategy to offer an increasingly broad and diverse product portfolio that spans key growth segments, operating systems and form factors. Since August, we have introduced more than 40 new products for market segments from the Internet-of-Things to datacenters, with an increasing focus on ultra-mobile devices and 2-in-1 systems."
Intel noted PC Client Group revenue of $8.4 billion, up 3.5 percent sequentially and down 3.5 percent year-over-year. The company's gross margin came in at 62.4 percent, 1.4 percentage points above the midpoint of the company's prior expectation of 61 percent. Other Intel architecture operating segments posted revenue of $1.1 billion, up 13.3 percent sequentially and down 9.3 percent year-over-year.
For Intel's fourth quarter, it expects revenue of $13.7 billion, plus or minus $50 million. It will take a one-time $100 million "restructuring and asset impairment charges" as it continues realigning its processor sales at retail.