The company reported revenue was $13.8 billion, slightly below estimates of $13.84 billion for the quarter ended March 31. With figures like that you wonder why Intel needs to take a $1.2 billion one-time charge to off-load so many staff.
Intel said that it had strong results in its data center and Internet of Things groups, and that good results from the Programmable Solutions Group helped offset PC market and macroeconomic challenges.
Intel expects the restructuring to accelerate its transformation from a PC company to one that “powers the cloud and billions of smart, connected computing devices.” Intel also said that CFO Stacy Smith will transition to a new role leading sales, manufacturing, and operations once his successor on the CFO job is in place.
Intel reported first-quarter net income of $2.6 billion, or 54 cents a share, on non-GAAP revenue of $13.8 billion.
The company generated approximately $4 billion in cash from operations, paid dividends of $1.2 billion, and used $793 million to repurchase 27 million shares of stock.
Intel boss Brian Krzanich, Intel CEO said:
“Our first-quarter results tell the story of Intel’s ongoing strategic transformation, which is progressing well and will accelerate in 2016,” said B. “We are evolving from a PC company to one that powers the cloud and billions of smart, connected computing devices.”
Intel said the PC division, the Client Computing Group, saw revenue of $7.5 billion, down 14 percent sequentially and up 2 percent from the first quarter a year ago.
Data Center Group revenue was $4.0 billion, down 7 percent sequentially and up 9 percent year-over-year. Internet of Things Group had revenue of $651 million, up 4 percent sequentially and up 22 percent year-over-year. Non-Volatile Memory Solutions Group revenue was $557 million, down 15 percent sequentially and down 6 percent year-over-year.
The Intel Security Group revenue was $537 million, up 12 percent year-over-year. And Programmable Solutions Group saw revenue of $359 million, which does not include $99 million of revenue as a result of acquisition-related adjustments.
This all means that Intel has to do something to change the way things are going. PC sales seem to be stalled and the smart money is in areas where Chipzilla has historically not done well.
