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Wednesday, 17 April 2013 11:38

Intel profit tumbles 25 percent

Written by Fudzilla staff

But the outlook is not bad at all

The PC slump is taking its toll on big bad Intel. The chipmaker saw its profit dip 25 percent last quarter, with a 2.5 percent decline in revenue. The results come as no surprise, as the PC industry is in the middle of its biggest slump in two decades.

Intel’s Q1 revenue was $12.6 billion, operating income was $2.5 billion and the net income was $2 billion. The company generated $4.3 billion in cash and paid dividends of $1.1 billion.

PC Client Group revenue is down 6 percent year-on-year and 6.6 percent sequentially. Data center revenue is down as well, 6.9 percent sequentially and 7.5 percent year-on-year. Intel’s gross margin was 56 percent, down 2 percent sequentially and 8 percent year-on-year.

It is all a bit too red for our liking, but Intel’s outlook is not bleak at all. The chipmaker expects $12.9 billion of revenue in Q2, with a 58 percent gross margin. Intel expects its margin on a yearly level to hit 60 percent.

Fudzilla staff

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