Intel has released its financials for the first quarter of 2014, and things are looking good with better-than-expected results despite its continued struggles to break into the mobile arena and a still-shrinking desktop market.
Intel's Q1 2014 results slightly exceeded analysts' expectations, but the company's mobile arm is suffering a significant drop in revenue.
The company's official figures for the quarter show $12.8 billion in revenue, exactly matching analysts' expectations, with a gross profit margin of 59.7 per cent for a total earnings per share of $0.38 - above the $0.37 average expected by analysts. $3.1 billion of this came from the Data Centre Group, responsible for server and high-performance computing (HPC) products, which enjoyed a bumper 11 per cent boost in revenue over the same period last year; the PC Client Group, which targets the still-shrinking PC market, brought in the lion's share at $7.9 billion, a one per cent drop compared to Q1 2013.
'In the first quarter we saw solid growth in the data centre, signs of improvement in the PC business, and we shipped five million tablet processors, making strong progress on our goal of 40 million tablets for 2014,
' claimed Intel's chief executive Brian Krzanich during the company's earnings call. 'Additionally, we demonstrated our further commitment to grow in the enterprise with a strategic technology and business collaboration with Cloudera, we introduced our second-generation LTE platform with CAT6 and other advanced features, and we shipped our first Quark products for the Internet of Things.
Other highlights include a 10 per cent quarter-on-quarter drop in revenue for the Internet of Things Group which ended the quarter with $482 million in revenue, still an 11 per cent improvement over the same period last year thanks largely to new low-power Atom and Quark processor products. The company's Mobile and Communications Group, responsible for smartphone and tablet oriented chips, was by far the biggest loser: with just $156 million in revenue, its income was down 52 per cent quarter-on-quarter and a massive 61 per cent compared to Q1 2013.
Investors seem pleased with Intel's performance in the quarter, with the company's share price rising 1.08 per cent in pre-market trading to $27.06, still short of its recent April 2012 high of $28.38.