Intel released healthy financial results for the second quarter of 2017 today. The company took in $14.8 billion in revenue, up 9% from this time last year, and it posted $3.8 billion in operating income, up 190% over the same period. Net income also increased hand-over-fist to $2.8 billion, up from $1.3 billion a year ago. Those big jumps in profitability are partially because of a troubled quarter a year ago, during which Intel was incurring charges because of restructuring efforts.
|Q2 2017||Q2 2016||Change|
|Revenue||$14.8 billion||$13.5 billion||up 9%|
|Operating income||$3.8 billion||$1.3 billion||up 190%|
|Net income||$2.3 bilion||$1.3 billion||up 111%|
|Gross margin||61.6%||58.9%||up 2.7 points|
Those past clouds aside, Intel's core businesses are undeniably performing strongly. The Client Computing Group brought in $8.2 billion in revenue, up 12% from a year ago. The increase appears to have come from strong notebook platform sales. Intel reported revenue for mobile platforms was up 20% from a year ago. Desktop platform revenues shrank 3%. Revenue from the company's modem business grew 45% year-over-year, although "Other/Modem" revenue remains a small slice of the overall pie. Operating profit for the group grew to $3.0 billion from $1.9 billion.
In what Intel now calls its "data-centric businesses," the company enjoyed growth nearly across the board. The Data Center Group brought in revenue of $4.4 billion, up from $4 billion a year ago. Operating profit fell slightly to $1.7 billion, compared to $1.8 billion a year ago. Server platform volumes increased 7% and server platform average selling prices rose 1% compared to this time a year ago.
The Internet of Things Group posted revenue of $720 million, up 26% from $572 million a year ago. The group's operating profit grew to $139 million, compared to $89 million a year ago. The Non-Volatile Memory Solutions Group brought in $874 million in revenue, up 58% from a year ago. Programmable Solutions Group revenue fell 5% year-on-year to $440 million.
For its third quarter of fiscal 2017, Intel expects revenue of $15.7 billion and GAAP operating profit of $4.3 billion. The company is also revising its whole-year outlook higher. Intel expects annual revenue of $61.3 billion, up $1.3 billion from its prior guidance, and non-GAAP operating profit of $17.9 billion, up $0.6 billion from earlier guidance.
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