Intel reported Q4 2018 revenue of $18.7 billion, up 9 percent year-over-year (YoY); and full-year revenue set an all-time record of $70.8 billion, up 13 percent YoY. Q4 earnings per share amounted to $1.12 ($1.28 on a non-GAAP basis);
The Q4 results, however, fell short of analyst expectations, as did the company’s outlook for 2019. Data center revenues came in below market expectations. The company has not yet appointed a permanent CEO. Intel said it remains on-track to launch 10nm products in volume during 2019.
“2018 was a truly remarkable year for Intel with record revenue in every business segment and record profits as we transform the company to pursue our biggest market opportunity ever,” said Bob Swan, Intel CFO and Interim CEO. “In the fourth quarter, we grew revenue, expanded earnings and previewed new 10nm-based products that position Intel to compete and win going forward. Looking ahead, we are forecasting another record year and raising the dividend based on our view that the explosive growth of data will drive continued demand for Intel products.”
Some highlights:
The PC-centric business (CCG) was up 10 percent in the fourth quarter due to continued strong demand for Intel’s higher performance products and strength in commercial and gaming. CCG expanded its product portfolio for 2019 with the recent launch of new 9th Gen Intel® Core™ processors and unveiled “Ice Lake” the upcoming, 10nm-based PC processor, which is expected to be in OEM systems on shelves for holiday, 2019.
Collectively, Intel’s data-centric businesses grew 9 percent YoY in the quarter and 20 percent YoY in 2018. In the fourth quarter, DCG achieved 24 percent cloud segment growth and 12 percent communications service provider segment growth while enterprise revenue declined 5 percent. Intel recently announced that the new “Cascade Lake” family of high performance Intel® Xeon® processors with advanced AI and memory capabilities is now shipping.
Fourth-quarter Internet of Things Group (IOTG) revenue declined 7 percent YoY. However, excluding Wind River, which Intel divested in the second quarter, fourth-quarter IOTG revenue was up 4 percent YoY despite supply tightness. Record quarterly revenue in Intel’s memory business (NSG) was up 25 percent YoY. Intel’s Programmable Solutions Group (PSG) also achieved record quarterly revenue, up 8 percent YoY driven by strength in the data center and communications market segments.
Mobileye fourth-quarter revenue of $183 million was up 43 percent YoY as customer momentum continued. In 2018, Mobileye achieved 28 new design wins and 78 vehicle model launches.
