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Intel reports growth in PC sales and makes mobile top priority

Can new King Krzanich pull silicon from the stone?

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Intel's latest quarterly results came in slightly below analysts' expectations but carry promising news for Chipzilla's PC business, and new CEO Brian Krzanich says things are looking promising for the firm.

"In the second quarter, we delivered on our quarterly outlook and made several key product announcements," he said. "In my first two months as CEO, I have listened to a wide variety of views about Intel and our industry from customers, employees and my leadership team and I am more confident than ever about our opportunity as a company."

Intel's revenue is up $200m since the first quarter, at $12.8bn, with the PC sector reporting 1.4 per cent growth. That's not much, but given that in the last two quarters PC chip sales have fallen 6 per cent or more, it could have been a lot worse. Intel has promised great things for its Haswell processors and this may be a sign the silicon is selling well.

Datacenter revenue is up 6.1 per cent sequentially (although flat year-on-year) at $2.7bn, but the revenue from the Architecture Group is down 3.7 per cent since Q1 and 15 per cent since Q2 of 2012.

Margins are 58 per cent – well below the 60 per cent Intel was hoping for – and earnings per share were 39 cents, within analyst's predictions but with revenue slightly down on expectations.

"Looking ahead, the market will continue buying a wide range of computing products," Krzanich said. "Intel Atom and Core processors and increased SoC integration will be Intel's future. We will leave no computing opportunity untapped. To embrace these opportunities, I've made it Intel's highest priority to create the best products for the fast growing ultra-mobile market segment."

It's the first financials day for Chipzilla's new management team of CEO Brian Krzanich and president Renee James. Both were appointed in May as part of a management reshuffle after Paul Otellini announced his retirement.

Under the new structure, Intel's PC client group, the mobile communications group, and the data center unit all now report directly to Krzanich, with James taking control of Intel's worldwide manufacturing operations. Intel Architecture group head Dadi Perlmutter has left for an unspecified role within Intel and CTO Justin Rattner is retiring.

The first results of this reorganization will be seen next week when Diane Bryant, VP of Intel's Datacenter and Connected Systems group, presents Chipzilla's plans to "Reimagine the Datacenter." Mobile is also going to be something Intel will be pushing harder into as it seeks to get Atom into the tablet and smartphone market.

Intel will host an analyst call to explain its results and strategy in greater detail. You can listen in here. ®

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