Intel reported second-quarter GAAP revenue of $13.5 billion (up 3% YoY), operating income of $1.3 billion, net income of $1.3 billion and EPS of 27 cents.
“Second-quarter revenue matched our outlook and profitability was better than we expected,” said Brian Krzanich, Intel CEO. “In addition, our restructuring initiative to accelerate Intel’s transformation is solidly on-track. We’re gaining momentum heading into the second half. While we remain cautious on the PC market, we’re forecasting growth in 2016 built on strength in data center, the Internet of Things and programmable solutions.”
In a conference call, Krzanich said data center revenue grew 5% year over year, cloud services providers grew 9%, comm service providers grew 10%, and enterprise was down 1%. He said Intel continues to gain share in network infrastructure, including for SDN and NFV.
Q2 Key Business Unit Trends:
- Client Computing Group revenue of $7.3 billion, down 3 percent sequentially and down 3 percent year-over-year
- Data Center Group revenue of $4.0 billion, up 1 percent sequentially and up 5 percent year-overyear
- Internet of Things Group revenue of $572 million, down 12 percent sequentially and up 2 percentyear-over-year
- Non-Volatile Memory Solutions Group revenue of $554 million, down 1 percent sequentially and down 20 percent year-over-year
- Intel Security Group revenue of $537 million, flat sequentially and up 10 percent year-over-year
- Programmable Solutions Group revenue of $465 million, up 30 percent sequentially. Note the comparable period did not include $99 million of revenue as a result of acquisition-related adjustments.
