Intel’s Q3 Results Are Higher Than Expected – Doing Well In A Weak Market

Intel recently published its third quarter financial results for 2013 and the results are better than many expected. Intel reported that total revenue is up 5% over the previous quarter but is “flat” year-on year. Intel reported a total revenue of $13.5 billion with an operating income of $3.5 billion and a net income of $3 billion. Intel’s earnings per share figure was $0.58 helped by an improvement in its gross margin from 61% last year to 62.4% this year.

“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 reported revenue for its PC Client Group was up 3.5% from last quarter to $8.4 billion, but that’s down 3.5% compared to the same period last year. Intel’s main gain came with its Data Center group which grew its revenues to $2.9 billion which is up 6.2% from the last quarter and 12.2% year-on-year. Intel also managed to spend $0.1 billion less than predicted within its R&D department. Intel’s “other” category posted revenues of $1.1 billion, up 13.3% sequentially but down 9.3% year-on-year.

What the figures show is that Intel has been able to counteract a weak PC market with growth in the professional and enterprise sector and in the mobile markets. Intel hopes to maintain its strong gross margin and revenues into Q4 of this year.

More details here.

Image courtesy of Intel