Published in News

Chipzilla reports increased first quarter earnings and sales

by on28 April 2017


But Intel fails in data centre sales


Intel reported better first quarter earnings and sales thanks mostly to its push into more memory products and areas such as self-driving automobiles.

However, Intel’s shares fell four percent, to $35.99.  In after hours trading, data centre sales disappointed the cocaine nose jobs of Wall Street.

Intel said that for the quarter ending April 1, it earned 66 cents a share, excluding one-time items, on revenue of $14.8 billion, compared with a profit of 54 cents a share on $13.8 billion in sales during the same period a year ago.

Wall Street had expected Intel to earn 65 cents a share on $14.8 billion in revenue.

Chief Executive Brian Krzanich said the results showed the success the company is having “in our transformation from a PC company” to one that’s more immersed in growth areas such as cloud-based technologies, artificial intelligence and self-driving automobiles.

Memory chip sales showed the biggest gain, rising 55 percent from a year ago, to $866 million. Client computing, or sales for PCs and other computers, also rose six percent from a year ago, to $8 billion.

But data centre revenue, which rose six percent to $4.2 billion, fell short of the $4.35 billion expected. Krzanich maintained that he was upbeat about Intel’s business sales rising from a year ago. Krzanich also reminded analysts that last year’s first quarter had 14 weeks in it which gave the company more time to finalize sales than the 13 weeks that were in this year’s first quarter.

“We’re off to a good start and executing against our priorities,” Krzanich said.

Intel also said that for its current (second) quarter, it estimates sales of $14.4 billion, “plus or minus” $500 million, which puts Intel’s sales forecast range between $13.9 billion and $14.9 billion. Analysts had earlier estimated Intel’s second quarter revenue to come in at $14.34 billion.

Last modified on 28 April 2017
Rate this item
(0 votes)

Read more about: