Intel Reports First-Quarter 2019 Financial Results
Intel Corporation today reported first-quarter 2019 financial results. "Results for the first quarter were slightly higher than our January expectations.
We shipped a strong mix of high performance products and continued spending discipline while ramping 10nm and managing a challenging NAND pricing environment. Looking ahead, we're taking a more cautious view of the year, although we expect market conditions to improve in the second half," said Bob Swan, Intel CEO. "Our team is focused on expanding our market opportunity, accelerating our innovation and improving execution while evolving our culture. We aim to capitalize on key technology inflections that set us up to play a larger role in our customers' success, while improving returns for our owners."
In the first quarter, the company generated approximately $5.0 billion in cash from operations, paid dividends of $1.4 billion and used $2.5 billion to repurchase 49 million shares of stock. In the first quarter, Intel achieved 4 percent growth in the PC-centric business while data-centric revenue declined 5 percent.
The PC-centric business (CCG) was up 4 percent in the first quarter due to a strong mix of Intel's higher performance products and strength in gaming, large commercial and modem. Intel's first high-volume 10 nm processor, code-named Ice Lake, remains on track to be in volume systems on retail shelves for the 2019 holiday selling season.
Collectively, Intel's data-centric businesses declined 5 percent YoY in the first quarter. In the Data Center Group (DCG), the cloud segment grew 5 percent while the communications service provider segment declined 4 percent and enterprise and government revenue declined 21 percent. First-quarter Internet of Things Group (IOTG) revenue grew 8 percent YoY (19 percent excluding Wind River1), and Mobileye achieved record first-quarter revenue of $209 million, up 38 percent YoY as customer momentum continued. Intel's memory business (NSG) was down 12 percent YoY in a challenging pricing environment. Intel's Programmable Solutions Group (PSG) revenue was down 2 percent YoY in the first quarter.
Q1 2019 Financial Highlights
GAAP |
Non-GAAP |
||||||
Q1 2019 |
Q1 2018 |
vs. Q1 2018 |
Q1 2019 |
Q1 2018 |
vs. Q1 2018 |
||
Revenue ($B) |
$16.1 |
$16.1 |
flat |
$16.1^ |
$16.1^ |
flat |
|
Gross Margin |
56.6% |
60.6% |
down 4 pts |
58.3% |
62.3% |
down 4 pts |
|
R&D and MG&A ($B) |
$4.9 |
$5.2 |
down 7% |
$4.9^ |
$5.2^ |
down 7% |
|
Operating Income ($B) |
$4.2 |
$4.5 |
down 7% |
$4.5 |
$4.8 |
down 6% |
|
Tax Rate |
12.6% |
11.1% |
up 1.5 pts |
12.5% |
11.7% |
up 0.7 pt |
|
Net Income ($B) |
$4.0 |
$4.5 |
down 11% |
$4.0 |
$4.2 |
down 3% |
|
Earnings Per Share |
$0.87 |
$0.93 |
down 6% |
$0.89 |
$0.87 |
up 2% |
The first quarter marked the introduction of a broad, new portfolio of data-centric products from Intel featuring the 2nd-Generation Intel Xeon Scalable processor family with integrated Intel Deep Learning Boost (Intel DL Boost) for AI deep learning inferencing acceleration and support for Intel Optane DC persistent memory, the revolutionary technology that brings affordable, high-capacity persistent memory to Intel's data-centric computing portfolio. Intel also introduced more than 50 workload-optimized Intel Xeon processors, a 56-core, 12 memory channel Intel Xeon Platinum 9200 processor, and the new Intel Agilex line of 10 nm-based FPGAs.
Business Outlook
Intel's guidance for the second-quarter and full-year 2019 includes both GAAP and non-GAAP estimates. Reconciliations between these GAAP and non-GAAP financial measures are included below.
Intel's Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures, strategic investments and other significant transactions that may be completed after April 25, 2019. Actual results may differ materially from Intel's Business Outlook as a result of, among other things, the factors described under "Forward-Looking Statements."
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Senior Member
Posts: 110
Joined: 2005-11-14
funny no one commenting this ? considering there lots on comment on intel-roadmap
i am expecting intel fanbois (*not provoking flame-post) post some comment in here
like "people saying intel is on panic while still making "okay" reports"
for me the report isnt good, its flat compared to q1 2018
but that also the point to be taken, i mean intel under-pressure atm yet still making 16billion revenue means demands of their product almost remain same to last year
but i am hoping they could releasing more interesting product this year
with all vulnerabilities on their cpus and staying on 14nm while other already moving out
keep stay flat every each year, and all of sudden u will fall
i personally kinda looking forward for their X599 chipset as no new news since late last year
rightnow thinking to build a TR4 system, but if X599 turn to be more spicy, i might change my mind
So as far as "intel fanbois" are concerned.. damned if they post.. damned if they don't...
Senior Member
Posts: 309
Joined: 2018-03-01
Comments here get erased if you favor one side. Very disappointed after being a long time fan here. I'm going to another site and won't brag for guru anymore.
Senior Member
Posts: 2068
Joined: 2017-03-10
funny no one commenting this ? considering there lots on comment on intel-roadmap
i am expecting intel fanbois (*not provoking flame-post) post some comment in here
like "people saying intel is on panic while still making "okay" reports"
for me the report isnt good, its flat compared to q1 2018
but that also the point to be taken, i mean intel under-pressure atm yet still making 16billion revenue means demands of their product almost remain same to last year
The numbers weren't that bad, but the forecast was terrible, missing full year estimates by $2bn.
Stocks are always forward-looking so it's no surprise that Intel stock took an absolute nosedive today, tanking almost 9% in daily trading (one of the largest declines in years). They dragged down Nvidia as well due to fears of a general slowdown in the semiconductor business, although AMD came out unscathed for some reason.
Senior Member
Posts: 8285
Joined: 2008-07-31
Considering how many arguments happen from "no my side is better, no my side is better!" your statements don't make sense. Seems to me you went overboard and are now pissy for it.
Given your post history, it seems you do not like intel, though, that could be wrong, i didn't do an extensive post history, but it seemed to favor AMD over intel.
Considering i favor AMD over Intel, and have never had a post deleted once, and have gotten into some long-winded arguments with people, again, your post makes no sense.
To have an argument, you must have both sides, and since both sides in the various arguments on this forum have not been deleted.......again, your post makes no sense.
And your forum account is only from February 2018, just over a year old. Sure, you could say "long time reader, recent poster", but that's just hearsay, can't exactly state you're a long time fan just to make it sound like your feelings matter more and should be taken into consideration more when you don't have anything to back you up in that regards.
Sure, this may seem harsh, but you didn't have to post what you did that i quoted, it really had nothing to do with anything about the topic. Sure, i can see someone skewing the idea that the original first post started it, but, you just came in here, without even replying to anyone, saying what you did. If you wish to leave a forum, any forum, just leave rather then trying to make the world care about you.
Senior Member
Posts: 813
Joined: 2009-11-30
funny no one commenting this ? considering there lots on comment on intel-roadmap
i am expecting intel fanbois (*not provoking flame-post) post some comment in here
like "people saying intel is on panic while still making "okay" reports"
for me the report isnt good, its flat compared to q1 2018
but that also the point to be taken, i mean intel under-pressure atm yet still making 16billion revenue means demands of their product almost remain same to last year
but i am hoping they could releasing more interesting product this year
with all vulnerabilities on their cpus and staying on 14nm while other already moving out
keep stay flat every each year, and all of sudden u will fall
i personally kinda looking forward for their X599 chipset as no new news since late last year
rightnow thinking to build a TR4 system, but if X599 turn to be more spicy, i might change my mind