Intel's fourth-quarter earnings close 2016 on a high note

Intel closed out its 2016 books today, and the results are rosy. The company posted $16.4 billion in revenue for the last quarter of 2016, up 10% from a year ago, and operating income of $4.5 billion, up 5% from a year ago. For its fiscal 2016, the blue team took in total revenue of $59.4 billion, up 7% from its fiscal 2015, and $12.9 billion in operating income, down slightly from the $14 billion in operating profit it generated in 2015. Gross margin for the year fell to 60.9% from 62.6%.

  Q4 2016 Q4 2015 Change
Revenue $16.4 billion $14.9 billion up 10%
Operating income $4.5 billion $4.3 billion up 5%
Net income $3.6 billion $3.6 billion down 1%
Gross margin 61.7% 64.3% down 2.6%

Intel's Client Computing group took in $9.1 billion, up 4% year-on-year, despite a 7% decline in platform sales (the combination of processors and chipsets). That's thanks in part to a 7% increase in the average selling price of those platforms. Drilling down into those numbers, the company says desktop platform volumes shrank by 9% compared to a year ago, while the average selling price for those platforms increased 2%. Notebook platform sales were unchanged from a year ago, but average selling prices increased by 3%. The Data Center group generated $4.7 billion in revenue, up 8% year-on-year. Server platform volumes grew by 3%, and average selling prices increased by 4%.

Intel's thrust into the nascent Internet of Things space appears to be paying off with continuing rapid growth. Though it's still a relatively small portion of the company's overall revenue pie, the IoT group took in $726 million in revenue, up 16% from a year ago. The Non-Volatile Memory Solutions group is also enjoying healthy growth. The $816 million revenue figure for that division is up 25% year-on-year. 

Meanwhile, the Programmable Solutions group formed from Intel's Altera acquisition took in $420 million in revenue, and the Intel Security group grew its revenue by 2% year-on-year.

For the whole of its fiscal 2017, Intel expects revenue to be flat compared to the year past, and the company expects its gross margin to increase slightly.

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