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Intel Rises in Q3 But Expects Q4 Decline

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Intel reports record revenues of $15.8 billion for fiscal Q3 2016-- a 9% Y-o-Y increase-- while profits are up by 6% Y-o-Y to $4.5bn, but despite such results Chipzilla expects declines for the coming quarter.

Intel logo"It was an outstanding quarter, and we set a number of new records across the business," CEO Brian Krzanich says. "In addition to strong financials, we delivered exciting new technologies while continuing to align our people and products to our strategy. We're executing well, and these results show Intel’s continuing transformation to a company that powers the cloud and billions of smart, connected devices."

The Intel Client Computing Group still accounts for the lion's share (over 50%) of revenues to make $8.9bn, a 4.5% Y-o-Y increase driven by growing shipment volumes and incrasing notebook chip ASPs. Meanwhile the datacentre group sees revenues increase by 10% Y-o-Y to $4.6bn thanks to higher spending by cloud computing services.

IoT revenue is up by 20% Y-o-Y to $689 million, non-volatile memory solutions revenue is down by -1% Y-o-Y (or up 17% Q-o-Q) to $649m and security revenues total $537m, a 6% Y-o-Y increase.

However for the future the company predicts Q4 revenues to total $15.7bn, down from Wall Street expectations of around $15.87bn. How come? Intel says guidance for the quarter is lower doe to next-gen manufacturing process startup costs, as well as expectations of the global PC supply chain looking to reduce inventory, hitting the usually positive holiday season.

Go Intel Q3 2016 Earnings Report