Saturday, July 21, 2012

Intel Earnings Review: Muddling Along on Lowered Revenue Outlook


Intel reported QE June 2012 financial results on Tuesday, July 17

Move along folks, nothing exciting going on here at Intel: declining margins, slowing financial performance, and uncertain revenue growth. The tough struggle continues in the transition to "refresh" its product line and adapt to reality.

Apparently there has been a delay and Intel has encountered additional obstacles, including macroeconomic uncertainty. CEO Paul Otellini continues to promise better days ahead but so far the horizon of realization continues receding ahead.

Metric, QoQ Change, YoY Change
Total Assets: $72.35 billion, +1%, +9%
Total Revenues: $13.50 billion, +5%, +4%
Net Income: $2.83 billion, +3%, -4%
Earnings per Share: $0.54, +2%, 0%
















Intel Outlook


Q3 2012 (GAAP, unless otherwise stated)
· Revenue: $14.3 billion, plus or minus $500 million.
· Gross margin percentage: 63 percent and 64 percent Non-GAAP (excluding amortization of acquisition related intangibles), both plus or minus a couple of percentage points.

Full Year 2012 (GAAP, unless otherwise stated)
· Revenue up between 3 percent and 5 percent year over year, down from the prior expectation for high single digit growth.
· Gross margin percentage: 64 percent and 65 percent Non-GAAP (excluding amortization of acquisition related intangibles), both plus or minus a couple of points.

“The second quarter was highlighted by solid execution with continued strength in the data center and multiple product introductions in Ultrabooks and smartphones,” said Paul Otellini, Intel president and CEO. “As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macro economic environment. With a rich mix of Ultra book and Intel —based tablet and phone introductions in the second half, combined with the long term investments we're making in our product and manufacturing areas, we are well positioned for this year and beyond.


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