Feeds

Intel's fourth quarter a bummer, as expected

Profits fall a lot faster than revenues

Designing a Defense for Mobile Applications

Intel helps kick off the high tech earnings season by reporting its financial results for the fourth quarter and full 2012 year, and as Wall Street and Intel top brass had been anticipating, it was not a killer quarter.

It was, perhaps, not as bad as many had expected given the challenges in the PC and server rackets and Intel's lack of traction in smartphones and tablets. In the quarter ended in December, Intel's revenues were $13.5bn, down 3 per cent compared to the year ago period. Gross margins were hammered by 6.5 points to 58 per cent and net income dropped to $2.5bn, falling by 27 per cent.

"The fourth quarter played out largely as expected as we continued to execute through a challenging environment," said outgoing Intel president and CEO Paul Otellini in a statement accompanying the financial figures. And he was ever the Intel cheerleader, which is a CEO's job at any company.

"We made tremendous progress across the business in 2012 as we entered the market for smartphones and tablets, worked with our partners to reinvent the PC, and drove continued innovation and growth in the data center. As we enter 2013, our strong product pipeline has us well positioned to bring a new wave of Intel innovations across the spectrum of computing."

Intel's PC Client Group stomached a 6 per cent revenue decline in the quarter, to $8.5bn, while the Data Center Group, which makes chips and chipsets for servers, storage arrays, and network devices, had a 4 per cent revenue bump to $2.8bn.

For the full year, Intel's revenues were down 1.2 per cent to $53.3bn, and gross margins were only off four-tenths of a point to 62.1 per cent. Net income was nonetheless off 15 per cent for the year to $11bn. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.