Hot on the heels of AMD's healthy earnings report yesterday, Intel posted strong Q1 2018 results of its own this afternoon. The blue team took in $16.1 billion in revenue, up 9% year-on-year. The company turned a $4.5 billion operating profit on that revenue, up 23% on the year. Net income was $4.5 billion, up 50% on the year, and earnings per share of 93 cents was up 53% on the year. Gross margin fell 1.3 percentage points on the year, to 60.6%.
|Q1 2018||Q1 2017||Change|
|Revenue||$16.1 billion||$14.8 billion||up 9%|
|Operating income||$4.5 billion||$3.6 billion||up 23%|
|Net income||$4.5 billion||$3.0 billion||up 50%|
|Gross margin||60.6%||61.9%||down 1.3 pp|
|Earnings per share||$0.93||$0.61||up 53%|
Intel's PC-focused Client Computing Group brought in $8.2 billion in revenue, up 3% from this time last year. Operating income fell 8% to $2.8 billion. PC platform volumes (a measurement of processor and chipset sales) were flat on the year, though desktop platform average selling prices rose 7% and notebook average selling prices rose 1%. Interestingly, Intel attributed the fall in CCG operating income in part to its 10-nm transition efforts.
The blue team trumpeted its data-centric business results in its earnings release, and it's easy to see why. Revenue from the Data Center Group rose 24% on the year, to $5.2 billion, and the group's operating income rose 75% to $2.6 billion. Data center platform revenues rose 24% on the year, and unit volumes grew 16%. Average selling prices of data center platforms rose 7%. Among the distinct market segments Intel cites, cloud service provider revenues grew 45% and communication service provider revenue grew 33%. Government and other enterprise revenue grew 3%.
The Internet of Things group posted $840 million in revenue and $227 million in operating income, a 17% increase in year-on-year revenues. The Mobileye business unit contributed another $151 million in revenue and $10 million in operating income to the IOT division. Intel cites "retail and video" as the drivers of this growth. The Non-Volatile Solutions Group enjoyed revenue of $1.04 billion, though the division still posted an $81 million loss (compared to a $129 million loss a year ago). The Programmable Solutions Group posted $498 million in revenue, up 17% on the year, and made $97 million in operating profit.
For its second quarter of 2018, Intel expects $16.3 billion in revenue on a GAAP basis, plus or minus $500 million, which would represent a 10% increase from the year-ago quarter. The company expects operating margin of about 28% and earnings per share of about $0.85.