Citing COVID-19 effects in enterprise and government, Intel reported third-quarter revenue of $18.3 billion, down 4 percent year-over-year (YoY). Data-centric revenue declined 10 percent while PC-centric revenue was better than expected, up 1 percent YoY. Third-quarter GAAP earnings-per-share (EPS) was $1.02, down 25 percent YoY; non-GAAP EPS of $1.11 was down 22 percent YoY, above July expectations.
“Our teams delivered solid third-quarter results that exceeded our expectations despite pandemic-related impacts in significant portions of the business,” said Bob Swan, Intel CEO. “Nine months into 2020, we’re forecasting growth and another record year, even as we manage through massive demand shifts and economic uncertainty. We remain confident in our strategy and the long-term value we’ll create as we deliver leadership products and aim to win share in a diversified market fueled by data and the rise of AI, 5G networks and edge computing.”
Some highlights
- In the Data Center Group (DCG), Cloud revenue grew 15 percent YoY on continued demand.
- DCG’s Enterprise & Government market segment was down 47 percent YoY following two quarters of more than 30 percent growth.
- The pandemic also weighed on third-quarter data-centric results in the Internet of Things Group and the memory business (NSG).
- Mobileye revenue returned to growth in the third quarter as global vehicle production improved. The business also launched its new Mobileye SuperVision surround-view ADAS solution.
- The PC-centric business (CCG) was up 1 percent YoY in the third quarter on continued notebook strength to support the work- and learn-at-home dynamics of COVID-19.
- Intel’s third 10nm manufacturing facility, which is located in Arizona, is now fully operational and the company now expects to ship 30% higher 10nm product volumes in 2020 compared to January expectations.