Starting with Q4 2020 financial report, Intel has been doing quite well, reporting a revenue of $20 billion, just a one percent drop compared to the same quarter last year, but also a nine percent increase compared to the previous quarter.
The net and operating income were reported at $5.9 billion each, which, compared to the previous quarter, is an increase of 37 and 16 percent, respectively. The gross margin is at 56.8 percent, an increase of 3.7 percent compared to the previous quarter, and a drop of 2 percent compared to the same quarter last year.
Client Computing Group to the rescue
When it comes to specific departments, or groups, at Intel, the Client Computing Group revenue was at $10.9 billion, a healthy 11 percent increase compared to the previous quarter and up by 9 percent compared to the last year.
It is interesting that the Client Computing Group is in its fifth straight year of record revenue, which is impressive, with a 20 percent increase in notebook and 10 percent drop in the desktop market segment compared to the last year.
The Data Center Group reported revenue of $6.1 billion, which is a slight increase of three percent compared to the last quarter but also a 16 percent drop compared to the last year.
IoT Group was also up this quarter, by 15 percent and down by 16 percent compared to the last year, with revenue of $777 million.
Mobileye brought in $333 million, which is a 42 percent increase. The Non-Volatile Memory SG brought $1.2 billion to the table, and the Programmable Solutions Group revenue was at $422 million.
When it comes to 2020 full-year results, Intel is reporting a reveneighte of $77.9 billion, up by eight percent compared to the last year. Operating and net income was reported at $23.7 billion and $20.9 billion, which, compared to the last year, adds to an increase of 8 percent and a decrease of one percent, respectively.
The gross margin for the full-year was reported at 56 percent, down by 2.5 ppt compared to the last year.
All groups within the company have reported a yearly increase, with non-volatile memory SG leading the way with 23 percent. The exception is the IoT Group, which was down by 21 percent.
Tough times ahead of Intel
Intel's former and new CEOs, Bob Swan and Pat Gelsinger answered some rather serious questions during analyst Q&A and you can check out the full transcript over at Anandtech.com.
“We significantly exceeded our expectations for the quarter, capping off our fifth consecutive record year”, said Bob Swan, Intel CEO. “Demand for the computing performance Intel delivers remains very strong and our focus on growth opportunities is paying off. It has been an honor to lead this wonderful company, and I am proud of what we have achieved as a team. Intel is in a strong strategic and financial position as we make this leadership transition and take Intel to the next level.”
Intel's new CEO, Pat Gelsinger, expected to take over from Bob Swan sometime next month, expects Intel to come back on track and get ahead on the 7nm manufacturing, pushing the company to have most of its products in 2023 to be made in its own fabs. He also said that the use of external fabs is still being evaluated and we'll hear more about it in the future.
Intel expects a hard Q1 2021, with revenue of $17.5 billion, down by 12 percent. The operating margin should be at 30 percent, down by eight ppt compared to the same quarter last year, and EPS is rated at $1.10, down by 24 percent compared to the last year.
Intel has been certainly doing well with record quarters and solid financial report, on the other hand, grim times are ahead, and hopefully, the new CEO will get things on track.