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.
