Summary
Intel Corporation's (INTC) third-quarter 2013 report indicates revenue and net income holding relatively steady compared to the same period last year, with net revenue at $13.483 billion and net income at $2.950 billion. However, year-over-year for the first nine months, net revenue declined slightly by 2% to $38.874 billion, and net income saw a more significant drop of 18% to $6.995 billion. This performance reflects ongoing challenges in the PC market, evidenced by a 3% revenue decline in the PC Client Group, while the Data Center Group showed strength with a 12% year-over-year revenue increase. The company is actively managing its operational structure and future investments, as demonstrated by $124 million in restructuring and asset impairment charges related to workforce reductions and business exits. Intel is also investing heavily in R&D, particularly in mobile and emerging technologies, as evidenced by a 5% increase in R&D spending year-over-year for the quarter. The company continues to navigate the shift in computing devices, emphasizing new processor families like 'Haswell' and 'Bay Trail' for PCs, tablets, and convertibles, while also exploring ultra-low power architectures like 'Intel Quark' for the Internet of Things. Intel's liquidity remains strong, with substantial cash and investments, though a net decrease in cash and cash equivalents was observed for the nine-month period, largely due to increased investing activities. The company is also actively returning capital to shareholders through dividends and share repurchases, albeit at a slower pace for repurchases compared to the previous year. Investors should monitor the impact of the ongoing transition in the PC market, the company's investment in new product lines and manufacturing technologies (like 14nm process), and the resolution of ongoing legal proceedings.
Financial Highlights
52 data points| Revenue | $13.48B |
| Cost of Revenue | $5.07B |
| Gross Profit | $8.41B |
| R&D Expenses | $2.74B |
| SG&A Expenses | $1.97B |
| Operating Expenses | $4.91B |
| Operating Income | $3.50B |
| Interest Expense | $56.00M |
| Net Income | $2.95B |
| EPS (Basic) | $0.59 |
| EPS (Diluted) | $0.58 |
| Shares Outstanding (Basic) | 4.98B |
| Shares Outstanding (Diluted) | 5.10B |
Key Highlights
- 1Net revenue for the third quarter of 2013 was $13.483 billion, nearly flat year-over-year ($13.457 billion).
- 2Net income for the third quarter of 2013 was $2.950 billion, a slight decrease from $2.972 billion in the prior year.
- 3The PC Client Group (PCCG) revenue decreased by 3% year-over-year to $8.387 billion, reflecting softness in traditional PC demand.
- 4The Data Center Group (DCG) showed robust growth, with revenue up 12% year-over-year to $2.912 billion, driven by record unit sales.
- 5Intel incurred $124 million in restructuring and asset impairment charges in Q3 2013 related to workforce reductions and business exits.
- 6Research and Development (R&D) expenses increased by 5% year-over-year to $2.742 billion for the quarter, highlighting investment in new technologies.
- 7The company reported a net decrease in cash and cash equivalents of $3.597 billion for the first nine months of 2013, primarily due to increased investing activities.