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Intel trims FY outlook, sees better Q3
2015-07-16 08:53:00| Telecompaper Headlines
(Telecompaper) Intel reported second-quarter revenues of USD 13.2 billion, down 5 percent from a year earlier. The drop was due mainly to weakness in the PC market, with revenues at Intel's Client Computing Group down 14 percent year-on-year to USD 7.5 billion. Its data centre division grew revenues 10 percent to USD 3.9 billion, and IoT revenues were up 4 percent to USD 559 million. All three divisions also grew revenues compared to the first quarter of the year. Only the software and services segment posted sales flat on a sequential basis, at USD 534 million or down 3 percent year-over-year. Intel recorded a gross margin of 62.5 percent, slightly better than its forecast but still down 2.0 percent points from the year-earlier period. Operating profit fell 25 percent to USD 2.9 billion, and net profit was down 3 percent to USD 2.7 billion. Earnings per share were unchanged year-on-year at USD 0.55. For the third quarter, Intel forecast revenues of USD 14.3 billion, slightly better than the usual seasonal increase, and a gross margin around 63 percent. The company again cut its full-year outlook, now forecasting an around 1 percent drop in sales versus its previous forecast for flat revenues. The gross margin outlook was improved slightly to 61.5 percent from 61.0 percent.
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