Intel reports Q2 financials, qualifies Skylake chips for production

Intel has released its financial results for Q2 2015. The company reported operating income of $2.9 billion on revenue of $13.2 billion, down 25% and 5% respectively from a year ago. Gross margin fell two points year-over-year to 62.5%, while earnings per share remained flat at 55 cents.

Here's a tabular summary of the results:

  Q2 2015 Q2 2014 Change
Revenue $13.2 billion $13.8 billion down 5%
Operating income $2.9 billion $3.8 billion down 25%
Net income $2.7 billion $2.8 billion down 3%
Gross margin 62.5% 64.5% down 2 points

Performance results by group were mixed. The Client Computing Group took in $7.5 billion, down 14% from a year ago, and the company's software and services businesses saw revenue of $534 million, down 3% from this time last year. Other sectors had brighter results: the Data Center Group brought in $3.9 billion, up 10% from a year ago, while the company's Internet of Things business brought in $559 million, up four percent year-over-year.

CEO Brian Krzanich pointed to the results as evidence of the company's broadening focus, noting that 70% of operating profits came from growth in the data center, memory, and Internet of Things spheres. Those businesses helped to offset a soft PC market.

Looking forward, the company reports that it has qualified its sixth-generation "Skylake" Core processors for production during the second half of the year. Along with these chips, Intel thinks that the release of new PCs with Windows 10 will "bring excitement to client computing" later this year. For Q3 2015, the company forecasts revenue of $14.3 billion, plus or minus $500 million, and a gross margin of 63%, plus or minus "a couple of percentage points."

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