Intel reports 8pc increase in Q2 revenue to US$13.8bn

16 Jul 2014

Brian Krzanich, CEO of Intel

A strong strategy to extend the reach of Intel technology has fuelled an 8pc increase in second-quarter revenue for the chip giant to US$13.8bn from US$12.8bn in the previous quarter.

The company also reported an increase in profit of 45pc, from US$1.9bn the first quarter to US$2.8bn in the second quarter.

“Our second-quarter results showed the strength of our strategy to extend the reach of Intel technology from the data centre to PCs to the internet of things,” said Brian Krzanich, CEO of Intel.

“With the ramp of our Baytrail SoC family, we have expanded into new segments such as Chrome-based systems, and we are on track to meet our 40m unit tablet goal,” Krzanich added.

“In addition, we hit an important qualification milestone for our upcoming 14nm Broadwell product, and expect the first systems to be on shelves during the holidays.”

Intel’s operating income increased by 53pc to US$3.8bn, compared to US$2.5bn in the previous quarter.

Earnings per share for the second quarter amounted to US$0.55, up 45pc from US$0.38 in the first quarter.

Intel also generated some US$5.5bn in cash from operations, paid dividends of US$1.1bn, and used US$2.1bn to repurchase 74m shares of stock.

PC Client Group revenue totalled US$8.7bn, reflecting an increase of 9pc sequentially and 6pc year-over-year.

Data Center Group amounted to US$3.5bn, up 14pc sequentially and up 19pc year-over-year.

Internet of Things Group revenue reached US$539m, showing a rise of 12pc sequentially and 24pc year-over-year.

Decreases were shown in the Mobile and Communications Group, where revenue dropped 67pc sequentially and 83pc year-over-year to US$51m.

Software and services operating segments revenue fell 1pc sequentially and up 3pc year-over-year to US$548m.

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Tina Costanza was a journalist and sub-editor at Silicon Republic