Intel reports flat revenues and lower year-on-year profits for Q3

Intel has turned in its financial results for the third quarter of 2015. The company took in $14.5 billion in revenue, down less than one percent versus a year ago, and it enjoyed $4.2 billion in operating income, down about 8% year-over-year. Earnings per share were 64 cents, down two cents compared to a year ago.

  Q3 2015 Q3 2014 Change
Revenue $14.5 billion $14.6 billion down 0.7%
Operating income $4.2 billion $4.5 billion down 8%
Net income $3.1 billion $3.3 billion down 6%
Gross margin 63% 65% down 2%

The Client Computing Group took in $8.5 billion in revenue, down 7% year-over-year. According to the company's CFO commentary, desktop platform volume (accounting for both processors and chipsets) fell 19% from Q3 2014, but average selling prices (ASP) rose by 15%. Notebook platform volume fell 14% from a year ago, but ASP rose 4%. Tablets were hardest-hit: platform volumes fell 39% year-on-year.

Despite the stormy conditions in the client computing sector, Intel's other divisions delivered brighter results. The Data Center Group took in $4.1 billion, a 12% increase. The Internet of Things Group delivered $581 million in revenue, a 10% increase, and the company's software and services operations took in $556 million, about the same as this time last year.

For the fourth quarter of 2015, Intel expects $14.8 billion in revenue (plus or minus $500 million), gross margin of about 62 percent, and about $5 billion in spending divided among R&D and marketing, general, and administrative costs.

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