Intel profits down 25% in Q1 2013
Fall in year-on-year profits in line with expectations as PC market slips
Intel has posted its financial results for the first quarter of the year, with net profit down 25% year-on-year to $2bn, from revenue of $12.6bn, down from $12.9bn one year ago.
The company is suffering from the slowdown in PC markets, although results were in line with predictions and analyst expectations.
Worldwide PC shipments in the first quarter were down 13.9% year-on-year, to 76.3 million units, the worst drop since IDC began tracking the market in 1994.
“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.a 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.”
Intel’s PC Client Group saw revenue down 6% year-on-year, to $8bn, while the Data Centre Group’s revenue was up 7.5% to $2.6bn. The Intel Architecture Group posted revenue of $1.0 billion, down 9% year-on-year.
R&D and mergers & acquisitions spending was $4.5 billion. Intel expects to see low-single digit revenue growth for the full year.