Intel’s financial results for the second quarter of 2013 report revenue of US$12.8bn, just shy of analysts’ expectations. However, with its PC division dwindling, the chipmaker intends to focus its attentions on mobile processors.
In line with Intel’s expectations, US$12.8bn in revenue represents a 2pc increase on Q1 and a 5pc decrease year-on-year.
The company’s net income for Q2 2013 was US$2bn while its operating income was US$2.7bn. Earnings per share (EPS) were at US$0.39.
Intel’s PC Client Group contributed US$8.1bn of this revenue, which represents growth of 1.4pc from the previous quarter. CFO Stacy Smith attributed this small increase to customers beginning to build inventory of Haswell-based PCs.
However, year-on-year, the PC Client Group’s revenue has declined 7.5pc, and newly appointed CEO Brian Krzanich intends to shift focus to mobile.
“Looking ahead, the market will continue buying a wide range of computing products. Intel Atom and Core processors and increased SOC integration will be Intel’s future. We will leave no computing opportunity untapped,” he said. “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.”
Smith’s commentary on the earnings call was pessimistic in terms of the PC market. “We are forecasting the overall PC market segment for 2013 to be weaker than we expected at the beginning of the year. Our expectations are now that revenue will be approximately flat to last year,” he said.
For the next quarter, Intel expects revenue to grow 5pc to US$13.5bn (give or take US$500m) and its full-year forecast has been adjusted from a low percentage increase to remain flat year-on-year.