The Chips Are Down, Intel Rises

Written by Oonagh Reidy     16/10/2013 | 13:03 | Category: HOME OFFICE

Intel Q3 performance delivers above expectations but sales growth flat compared to last year

The Chips Are Down, Intel Rises

The chip maker's third-quarter revenue of $13.5 billion, up 5% from Q2 but growth was still flat year on year.

Intel CEO Brian Krzanich said the third quarter result was as expected, with "modest growth in a tough environment".  

"We're executing on our strategy to offer an increasingly broad and diverse product portfolio that spans key growth segments, operating systems and form factors." 

Since August, Intel has been riding the ultra- mobility and Internet-of-Things wave, launching 40 new products including 4th generation Core processors for Ultrabooks, tablets. 

However, there was better news on the net profit front - up 48% q-o-q to $3 billion. 

Q3 earnings per share also rose 49% to $0.58.

PC Client Group's revenue slumped 3.5% year-over-year to $8.4 bn, although rose 3.4% sequentially.

Other operating segments, including Data Centre Group, also rose 12.2 percent compared to a year ago. 

There was also good news on the gross margin front -  hitting 62.4 percent  - 1.4 percent above the expected 61 percent. 

However, Intel predicts Q4 revenue to rise just slightly from Q3 $13.7 billion plus or minus $500 million, and gross margin falling back to 61 percent.