Intel Corporation today reported first-quarter revenue of $12.6 billion, operating income of $2.5 billion, net income of $2.0 billion and EPS of $0.40. The company generated approximately $4.3 billion in cash from operations, paid dividends of $1.1 billion, and used $533 million to repurchase 25 million shares of stock. Our readers are mostly PC users, so it should be noted that the Intel PC Client Group had a revenue of $8.0 billion, down 6.6 percent sequentially and down 6.0 percent year-over-year.
Q1 Key Financial Information and Business Unit Trends
- PC Client Group revenue of $8.0 billion, down 6.6 percent sequentially and down 6.0 percent year-over-year.
- Data Center Group revenue of $2.6 billion, down 6.9 percent sequentially and up 7.5 percent year-over-year.
- Other Intel Architecture Group revenue of $1.0 billion, down 3.9 percent sequentially and down 9.0 percent year-over-year.
- Gross margin of 56 percent, down 2 percentage points sequentially and down 8 percentage points year-over-year.
- R&D plus MG&A spending of $4.5 billion, in line with the company's expectation of approximately $4.6 billion.
- Tax rate of 16 percent.
"Amidst market softness, Intel performed well in the first quarter and I'm excited about what lies ahead for the company," said Paul Otellini, Intel president and CEO. "We shipped our next generation PC microprocessors, introduced a new family of products for micro-servers and will ship our new tablet and smartphone microprocessors this quarter. We are working with our customers to introduce innovative new products across multiple operating systems. The transition to 14nm technology this year will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace."