Intel Profits Slide Amid PC Slump
October 13 2015 - 4:50PM
Dow Jones News
Intel Corp. said its third-quarter earnings fell 6.3% amid
continuing weak demand for personal computers.
For the current fourth quarter, the company estimated revenue of
$14.8 billion, plus or minus $500 million. Analysts polled by
Thomson Reuters expected revenue of $14.83 billion.
The semiconductor giant's shares, up 1.8% over the past year,
added 2 cents to $32.06 in recent after-hours trading.
The Santa Clara, Calif., company's biggest business remains
chips that power PCs, a sector that continued to struggle in the
latest quarter, with IDC and rival Gartner both reporting that
shipments declined in the period and received little help from the
release of Microsoft Corp.'s new Windows 10 operating system.
Buyers also may be putting off purchases until the arrival of
PCs built with Skylake, a long-awaited overhaul of Intel's flagship
Core line of microprocessors, which aren't expected to reach many
consumers until later this fall.
In the latest quarter, revenue in the company's client computing
group, which includes PCs, fell 7.5% to $8.51 billion.
Intel continued to post sales growth in its data center group
and Internet of Things unit, which includes chips for just about
everything but computers.
Data center segment sales grew 12% to $4.14 billion, while sales
in the Internet of Things unit increased nearly 10% to $581
million.
Overall, Intel reported a profit of $3.11 billion, or 64 cents a
share, down from $3.32 billion, or 66 cents a share, a year
earlier. Revenue decreased 0.6% to $14.47 billion from $14.55
billion.
Analysts polled by Thomson Reuters expected per-share profit of
59 cents and revenue of $14.22 billion. The semiconductor giant in
July projected revenue of $14.3 billion, plus or minus $500
million.
Gross margin fell to 63% from 65%.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 13, 2015 16:35 ET (20:35 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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