Intel beats forecasts with flat revenue, profits in third quarter


— 4:41 PM on October 15, 2013

PC shipments tanked again last quarter, but Intel doesn't seem to have suffered too terribly. The chipmaker posted its third-quarter earnings this afternoon, revealing flat revenue, steady profits, and a rather substantial 62.4% gross margin. Reuters says the numbers "mostly beat" Wall Street's expectations.

  Q3 2012 Q2 2013 Q3 2013
Revenue $13.5 billion $12.8 billion $13.5 billion
Net income $3.0 billion $2.0 billion $3.0 billion
Gross margin 63.3% 58.3% 62.4%

Here are the revenue numbers for each of Intel's main divisions:

  Q3 2012 Q2 2013 Q3 2013
PC Client Group $8.6 billion $8.1 billion $8.4 billion
Data Center Group $2.7 billion $2.7 billion $2.9 billion
Other IA Group $1.2 billion $942 million $1.1 billion

Intel's data center group seems to have buoyed the company in the third quarter. Revenue was down slightly across the chipmaker's other businesses, but the Data Center Group enjoyed 12% year-over-year growth—a "record," Intel says.

Intel CEO Brian Krzanich comments that the third quarter "came in as expected, with modest growth in a tough environment." He adds, "We're executing on our strategy to offer an increasingly broad and diverse product portfolio that spans key growth segments, operating systems and form factors."

In the ongoing fourth quarter, Intel expects revenue in the $13.2-14.2 billion range, with gross margin between 59% and 63%. That forecast is somewhat more conservative than the $14 billion analysts were predicting, according to Reuters. For reference, the chipmaker posted $13.5 billion revenue and a 58% gross margin for the fourth quarter of 2012.

   
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