Intel posted its third-quarter financial results this afternoon, and the company is continuing its record of steady growth and healthy profits. According to GAAP, the company took in revenue of $16.1 billion, up 2% year-over-year, or up 6% when excluding results from its McAfee business. The company claimed record operating income of $5.1 billion, up 15% year over year, and net income of $4.5 billion, up 34% from this time last year. Gross margin decreased one percentage point, to 62.3%. Earnings per share were up 36% year-on-year, to $0.94.
|Q3 2017||Q3 2016||Change|
|Revenue||$16.1 billion||$15.8 billion||up 2%|
|Operating income||$5.1 billion||$4.5 billion||up 15%|
|Net income||$4.5 bilion||$3.4 billion||up 34%|
|Gross margin||62.3%||63.3%||down 1 point|
|Earnings per share||$0.94||$0.69||up 36%|
The Client Computing Group, which encompasses all of Intel's PC-related businesses, took in $8.9 billion in revenue, unchanged from this time last year. Operating income from the division increased 8% year-on-year to $3.6 billion. Overall platform revenues (a measure of CPU and chipset sales) declined 2% year-on-year, and platform volumes shrank 7%. Notebook platform revenue increased 2%, while desktop platform revenue shrank by 6%. Average selling prices for all platforms grew by 7%, however. The company's modem and modem-related businesses enjoyed revenue growth of 15% year-on-year.
The Data Center Group took in revenue of $4.9 billion, up 7% from this time last year. Data center operating income increased 7% on the year to $2.3 billion. Data center platform revenue grew 7% year-on-year, and revenue from related businesses grew 16%. Platform volumes were up 4% on the year, and average selling prices increased 2%. Intel says cloud service provider revenue is up 24% year-on-year, and it grew its communications service provider revenue 9%. Enterprise and government revenue shrank 6%.
Intel's Non-Volatile Memory Solutions Group (NSG) rode the rising demand for flash memory to $891 million in revenue, up 37%, though the division still turned in a $52 million net loss. Intel claims that the NSG's core NAND business remains profitable, though. The Internet of Things Group took in $849 million in revenue, up 23% year-on-year. The Mobileye business contributed another $82 million in revenue and non-GAAP operating income of $39 million (excluding a $27 million "negative impact from acquisition-related inventory valuation adjustments"). The Programmable Solutions Group, formerly Altera, grew revenue 10% year-on-year to $469 million. The PSG's operating income grew 45% year-on-year to $113 million.
For the fourth quarter of 2017, Intel expects revenue to be flat year-on-year. Operating income is expected to grow 6% year-on-year, however, to $5.2 billion, and earnings per share is expected to increase 9%, to $0.86. For its full-year 2017 outlook, Intel expects $62 billion in revenue, $17.3 billion in GAAP operating income, and GAAP earnings per share of $2.93, plus or minus $0.05.