Intel's latest quarterly earnings are in, and they're good. The company pulled in $13.8 billion during Q2, an increase of 8% both sequentially and compared to the same quarter last year. Net income rose an impressive 40%, to $2.8 billion, and gross margins were also up.
|Q2 2014||Q2 2013||Change|
|Revenue||$13.8 billion||$12.8 billion||up 8%|
|Net income||$2.8 billion||$2.0 billion||up 40%|
|Gross margin||64.5%||58.3%||up 6.2 pts|
The PC Client Group generated $8.7 billion in revenue, a 6% bump over last year. Meanwhile, the Data Center Group's take rose 19% to $3.5 billion. Intel recently reshuffled its business units, so the figures for the various business divisions may not be directly comparable to last year's numbers.
In the press release announcing the results, Brian Krzanich claims Intel is "on track" to meet its goal of shipping 40 million tablet chips. That said, it's worth noting that the Mobile and Communications group responsible for smartphone and tablet hardware kicked in only $51 million for the quarter. The mobile market may be an important one, but it's not a big money-maker for Intel right now.
PCs remain Intel's bread and butter, and there's more good news on that front. According to Krzanich, Broadwell "hit an important qualification milestone" in Q2. That chip is expected to be available in systems during the holidays, though it's likely to be restricted to ultrabooks and convertibles, at least initially.
Looking forward, Intel expects its 2014 revenue to be 5% higher than last year. That outlook is slightly more positive than the company's previous forecasts, suggesting the PC market may be stronger than expected. So much for all the doom and gloom.