Summary
Intel Corporation reported a decrease in net revenue and net income for the second quarter and first six months of 2013 compared to the same periods in 2012. The decline in revenue was primarily driven by softness in the PC market, although the Data Center Group saw a slight increase in revenue year-over-year. Gross margin percentage also declined due to increased startup costs for next-generation manufacturing processes and lower overall revenue. The company is navigating a challenging PC market impacted by the rise of ultra-mobile devices and is investing in its Atom microarchitecture for these segments. Despite the revenue headwinds, Intel generated significant operating cash flow. The company is actively managing its capital resources, returning cash to shareholders through dividends and share repurchases, while also maintaining a substantial investment portfolio. Intel anticipates a flat revenue for the full year 2013, reflecting a slower than expected macroeconomic recovery and ongoing market shifts. The company is also making strategic adjustments, including re-directing resources to focus on Atom microarchitecture-based products and advanced SoC integration.
Financial Highlights
52 data points| Revenue | $12.81B |
| Cost of Revenue | $5.34B |
| Gross Profit | $7.47B |
| R&D Expenses | $2.52B |
| SG&A Expenses | $2.17B |
| Operating Expenses | $4.75B |
| Operating Income | $2.72B |
| Interest Expense | $60.00M |
| Net Income | $2.00B |
| EPS (Basic) | $0.40 |
| EPS (Diluted) | $0.39 |
| Shares Outstanding (Basic) | 4.98B |
| Shares Outstanding (Diluted) | 5.11B |
Key Highlights
- 1Net revenue for Q2 2013 was $12.811 billion, a 5% decrease from Q2 2012.
- 2Net income for Q2 2013 was $2.000 billion, a decrease from $2.827 billion in Q2 2012.
- 3Gross margin percentage declined to 58.3% in Q2 2013 from 63.4% in Q2 2012, impacted by higher manufacturing startup costs.
- 4PC Client Group revenue decreased by 7% year-over-year, reflecting softness in traditional PC demand.
- 5Data Center Group revenue saw a slight increase of $9 million year-over-year, driven by growth in cloud and high-performance computing.
- 6The company expects full-year 2013 revenue to be approximately flat compared to 2012.
- 7Intel returned $1.1 billion in dividends and repurchased $550 million in common stock during Q2 2013.