Intel's Q4 was 'terrific' and 'record setting' says CEO as profits dip
How's that sacking 12,000 people thing going, Bri?
Intel's profits dipped slightly in the last quarter of 2016, with income for the entire year down by 9 per cent.
Following the 5 per cent hit its share price took when the quarter's forward guidance was published in October last year, Intel hasn't failed to disappoint investors.
Although revenues were up year-on-year, from $14.9bn in the fourth quarter last year to $16.3bn in Q416, profits shrank by $50m – dipping to $3.56bn from $3.61bn.
"The fourth quarter was a terrific finish to a record-setting and transformative year for Intel," Brian Krzanich, Intel's chief exec, said in a canned statement.
That transformative year includes decimating the company workforce by firing 12,000 as its response to the ongoing collapse of the desktop PC market.
Delving into the business segments, Intel's IoT group revenues were $2.6bn, up 15 per cent year-on-year for Q4, with its security group posting revenues of $2.2bn for the same period, up 9 per cent year-on-year.
The data centre group posted $4.67bn in revenue for the quarter, up by 8 per cent on the group's 2015 Q4 revenues.
Revenues for the full year grew from £34.7bn in 2015 to $36.2bn last year. Profits, however, were down by a full billion over the 12-month period, from 2015's $11.4bn to $10.3bn.
"I'm pleased with our 2016 performance and confident in our future," chipped in Krzanich, who didn't find space in his canned quotes to note that Intel's forward guidance for financial year 2017 states that Chipzilla's revenues will be "flat".
The firm's share price dropped from $37.70 at the close of play on the NASDAQ last night to $37.60 at the time of writing. ®