October 27, 2017 // 10:40 a.m.
Hot on the heels of rival AMD's first profitable quarter in three years, Intel has announced its own quarterly financial report showing considerable growth in its non-volatile memory and Internet of Things divisions.
In Intel's report for the third quarter of its 2017 financial year the company had only mild growth to speak of - two percent year-on-year - but it's where that growth was found that is of most interest. Although Intel's Client Computing Group, which handles mainstream and enthusiast processors and related products for desktops, laptops, tablets, and mobiles, saw flat revenue year-on-year at $8.9 billion, the company's Non-Volatile Memory Solutions Group hit a 37 percent growth rate and the Internet of Things Group a 23 percent growth rate. Both together, however, make up only a tiny fraction of the company's overall revenue, at less than a billion dollars each - stark contrast to the $8.9 billion brought in by the Client Computing Group and $4.9 billion by the Data Centre Group, the latter of which posted seven percent growth of its own.
'We executed well in the third quarter with strong results across the business, and we're on track to a record year,' crowed Intel chief Brian Krzanich during the company's earnings call. 'I'm excited about our progress and our future. Intel's product line-up is the strongest it has ever been with more innovation on the way for artificial intelligence, autonomous driving and more.'
'In the third quarter, we delivered record earnings, exceeded our EPS [Earnings Per Share] expectations, and increased our profit expectations for the full year,' added Bob Swan, Intel's chief financial officer. 'We feel great about Intel's transformation and where we are nine months into our three year plan.'
A 15 percent increase in operating income and a four percent reduction in spending on research, development, mergers, and acquisitions helped Intel offset a single-point drop in gross profit margin - now down to a still-more-than-healthy 62.3 percent from 63.3 percent last year - and a two-point tax rate hike to bring in $4.3 billion in net income for the quarter, up an impressive 34 percent year-on-year. Intel's share price is up 2.32 percent in after-hours trading on the news.