Intel is a technological giant and continues to posts every impressive earnings each quarter which makes for interesting reading. The latest data shows Intel managed a third-quarter GAAP revenue of $15.8 billion and an operating income of $4.5 billion. Also, the net income was $3.4 billion while the EPS rate hit 69 cents. The company reported a non-GAAP operating income of $5.1 billion, net income of $3.9 billion and 80 cents share price. On another note, Intel amassed $5.8 billion from operations, $1.2 from paid dividends and spent $457 million to replenish 13 million shares. Brian Krzanich, Intel CEO described the results and said:
“It was an outstanding quarter, and we set a number of new records across the business,”
“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.”
Q3 Key Business Unit Trends
- Client Computing Group revenue of $8.9 billion, up 21 percent sequentially and up 5 percent year-over-year
- Data Center Group revenue of $4.5 billion, up 13 percent sequentially and up 10 percent year-over-year
- Internet of Things Group revenue of $689 million, up 20 percent sequentially and up 19 percent year-over-year
- Non-Volatile Memory Solutions Group revenue of $649 million, up 17 percent sequentially and down 1 percent year-over-year
- Intel Security Group revenue of $537 million, flat sequentially and up 6 percent year-over-year
- Programmable Solutions Group revenue of $425 million, down 9 percent sequentially
Business Outlook
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 October 18.
The acquisition of Altera was completed in early fiscal year 2016. As a result of the Altera acquisition, we have acquisition-related charges that are primarily non-cash. Our guidance for the fourth quarter and full-year 2016 include both GAAP and non-GAAP estimates. Reconciliations between these GAAP and non-GAAP financial measures are included below.
Restructuring and Other Charges Forecast
Total Restructuring and Other charges are now expected to be $2.3 billion, with the majority of the remaining charges to be realized between now and the middle of 2017. Approximately $1.8 billion has been realized to-date and another $250 million is expected in Q4 2016.
This is a new record for the industry and Intel’s financial results set the standard for others to try and emulate.
