Intel reports Q1 earnings: $12.6 billion revenue, $2 billion net income

[csbin]

http://www.engadget.com/2013/04/16/intel-reports-q1-earnings-12-6-billion-revenue/

Intel just reported a quarterly net income of $2 billion, with $12.6 billion in revenue for a total earnings of 40 cents per share. Net income is down 17 percent compared to Q4 2012, when the company reported $2.5 billion in profit. Revenue is also down by seven percent compared to the previous quarter's $13.5 billion. President and CEO Paul Otellini, who is stepping down in May, references the upcoming 14nm transition, saying that the technology will "will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace." The earnings call is set to happen soon; we'll report back with any additional news -- on the CEO front or otherwise.

 

[erunion]

listen: http://www.intc.com/events.cfm

transcript: http://seekingalpha.com/article/134...sses-q1-2013-results-earnings-call-transcript

 

[frozentundra123456]

http://www.engadget.com/2013/04/16/intel-reports-q1-earnings-12-6-billion-revenue/

Intel just reported a quarterly net income of $2 billion, with $12.6 billion in revenue for a total earnings of 40 cents per share. Net income is down 17 percent compared to Q4 2012, when the company reported $2.5 billion in profit. Revenue is also down by seven percent compared to the previous quarter's $13.5 billion. President and CEO Paul Otellini, who is stepping down in May, references the upcoming 14nm transition, saying that the technology will "will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace." The earnings call is set to happen soon; we'll report back with any additional news -- on the CEO front or otherwise.

So now 14 nm is supposed to be the magic bullet? First I thought it was supposed to be ivy. Then no, it will be haswell, because that is a tock. Now it will be Broadwell? Even then he did not really say performance would increase, just value. I dont suppose "value" would include a mainstream hex core??

 

[ShintaiDK]

You forget value is performance/watt.

 

[Haserath]

Value is also IGP performance.

 

[ShintaiDK]

STMicroelectronics was expected to drop 7%, and possible s high as 10½%. The same applies for virtually everyone.

 

[dinker99]

I`m surprised Intel haven`t diversified into more product lines, being dependant on processors makes them vulnerable to any downturn in the market.

 

[Idontcare]

So now 14 nm is supposed to be the magic bullet? First I thought it was supposed to be ivy. Then no, it will be haswell, because that is a tock. Now it will be Broadwell? Even then he did not really say performance would increase, just value. I dont suppose "value" would include a mainstream hex core??

AMD and Intel are very similar in this way - the next gen stuff is always going to be the bee's-knees and saving grace.

But it is no coincidence. The entire industry is that way. Ever read through the quarterly earnings announcements of Micron or Samsung or Toshiba?

They are all the same, "this quarter's earnings sucked because <insert timely excuse involving seasonality in demand, unassociated act of god that occurred somewhere, enabling software failed to spur demand, sluggish economy XYZ somewhere on the planet>, but we expect the next generation of products to sell like hotcakes because <insert random hope-and-dream sequence involving unicorns, beer, and morality-impaired scantily-clad showgirls>."

 

[Ketchup]

So now 14 nm is supposed to be the magic bullet? First I thought it was supposed to be ivy. Then no, it will be haswell, because that is a tock. Now it will be Broadwell? Even then he did not really say performance would increase, just value. I dont suppose "value" would include a mainstream hex core??

Hint: if the current product is doing well, it is the magic bullet. If not, the next item will be.

 

[mrmt]

AMD and Intel are very similar in this way - the next gen stuff is always going to be the bee's-knees and saving grace.

But it is no coincidence. The entire industry is that way. Ever read through the quarterly earnings announcements of Micron or Samsung or Toshiba?

Not only MPU industry but all of them.

The next store will be always more profitable or less opex intensive than the others, the next oil-well will be more productive than the previous one, and so on. Management must at least *believe* this to justify their money and increased expenses.

As long as the company delivers *some* of those promisses, it's ok. Nobody expects Conroe-like increases each generation, or a Ghawar field from every geophysical study out there, but sometimes they should happen, and the rest of the time the company results should fall within the reasonable limits of their forecasts.

What can't happen is a company promissing going to eleven every quarter but generating nothing but bust noises on the Q&A.

 

[Gikaseixas]

I`m surprised Intel haven`t diversified into more product lines, being dependant on processors makes them vulnerable to any downturn in the market.

More and more focus is being shifted towards the iGPU. CPUs for portable devices are the new trend(Smart phones and tablets). Intel is already doing all that but the issue here is that PC sales is still Intels #1 profit source

 

[frozentundra123456]

You forget value is performance/watt.

As long as you stay within a reasonable level on the desktop, not to me it isn't. I would much rather have a 15% performance increase from haswell than a 15 or even 20 percent drop in power consumption. Problem is, I don't even see much if any decrease in power consumption either. All I see is improvement in the igp, which I could care less about, because it is already good enough for everyday use and still not approaching a decent discrete card like the 7770.

Don't get me wrong, I still think Intel has the best product in most cases. They just seem to be basically standing still since SB.

 

[ShintaiDK]

As long as you stay within a reasonable level on the desktop, not to me it isn't. I would much rather have a 15% performance increase from haswell than a 15 or even 20 percent drop in power consumption. Problem is, I don't even see much if any decrease in power consumption either. All I see is improvement in the igp, which I could care less about, because it is already good enough for everyday use and still not approaching a decent discrete card like the 7770.

Don't get me wrong, I still think Intel has the best product in most cases. They just seem to be basically standing still since SB.

The problem for you is, that some 80-85% of all buyers dont want what you wish.

 

[frozentundra123456]

Value is also IGP performance.

I have a SB work laptop and in normal everyday use and even running my analytical software, I dont feel any lack of gpu power. Obviously I dont game on a work machine, but it would be inadequate for that. The move to Ivy would not really change that. Haswell, maybe, but it remains to be seen what the price of laptops with high end GT3e or whatever it is called will be.

On the desktop, the situation is even more pronounced.

So I dont consider improving an already adequate igp for casual use but still being inadequate for heavy use to be a major increase in value. Even when you consider the better graphics performance of AMD apus, I still feel that they are not a big selling point because they are more than good enough for casual uses and still far less powerful than a low/mid discrete card like teh 7750 or especially the 7770 or 650ti.

 

[frozentundra123456]

The problem for you is, that some 80-85% of all buyers dont want what you wish.

Agreed, and actually the percentage could be even higher, but looking at the sales figures, apparently those buyers dont really feel that whatever "improvements" intel is offering is not a major increase in value either, or they would be replacing their systems. On another note, part of the problem is that Intel invested heavily monetarily and product wise in ultra books, and they are not really a good value either because of the low (relatively) performance and high price. I would love to have one actually, but when you can get a conventional laptop for hundreds of dollars less with equal performance, it is hard to justify the cost for the added portability.

Unfortunately, what they probably want is a smartphone that seems to be free because the cost is hidden in the contract, or a cheap tablet. Personally I hate android, especially cheap tablets, and I keep waiting for them to go the way of the netbook, but apparently that is not happening.

 

[ShintaiDK]

Agreed, and actually the percentage could be even higher, but looking at the sales figures, apparently those buyers dont really feel that whatever "improvements" intel is offering is not a major increase in value either, or they would be replacing their systems. On another note, part of the problem is that Intel invested heavily monetarily and product wise in ultra books, and they are not really a good value either because of the low (relatively) performance and high price. I would love to have one actually, but when you can get a conventional laptop for hundreds of dollars less with equal performance, it is hard to justify the cost for the added portability.

Unfortunately, what they probably want is a smartphone that seems to be free because the cost is hidden in the contract, or a cheap tablet. Personally I hate android, especially cheap tablets, and I keep waiting for them to go the way of the netbook, but apparently that is not happening.

The reason why people dont buy is a mix of Windows 8(Secondary) and the economic situation(Primary). The same applies for ARM makers for example. Revenue is down. Just like everyone else in the industry.

 

[krumme]

Capex danger. Be alert.

 

[nehalem256]

The reason why people dont buy is a mix of Windows 8(Secondary) and the economic situation(Primary). The same applies for ARM makers for example. Revenue is down. Just like everyone else in the industry.

The reason people don't buy is there is no compelling reason to buy.

If you have say an Arrandale notebook from early 2010, which reason is there to upgrade to a new Ivy Bridge one now 3 years later?

 

[Ketchup]

As long as you stay within a reasonable level on the desktop, not to me it isn't. I would much rather have a 15% performance increase from haswell than a 15 or even 20 percent drop in power consumption. Problem is, I don't even see much if any decrease in power consumption either. All I see is improvement in the igp, which I could care less about, because it is already good enough for everyday use and still not approaching a decent discrete card like the 7770.

Don't get me wrong, I still think Intel has the best product in most cases. They just seem to be basically standing still since SB.

So AMD has not been standing still? Well they jumped up from "crap/outdated" to something "almost competitive, " so I don't think that is saying much.

To each his/her own. I have not hit a spot where I thought my CPU wasn't fast enough, and this is the "old" sandy bridge, and I do perform task like video conversion from time to time.

I did, however, enjoy how much cooler the computer room got when switching from my Q6600 to the 2500k.

 

[IntelEnthusiast]

I just built a new system to replace my old Intel® Core&#8482; i7-860 home system. I built this system with an Intel Core i7-3770K, EVGA GTX 660ti, Intel SSD 335 240GB, a new secondary touch screen monitor and Windows 8. While I am very happy with everything else on the build I am not a big fan of Windows 8 and the metro interface. An old statement comes to mind when using the metro interface, "Insanity: doing the same thing over and over again and expecting different results." Albert Einstein

 

[pablo87]

Capex danger. Be alert.

Its also why the tax rate is so low - the tax authorities' depreciation rate for Intel's fabs is much higher than Intel's own at the moment, of course eventually that reverses itself. I don't know what they're thinking here...

 

[ShintaiDK]

The reason people don't buy is there is no compelling reason to buy.

If you have say an Arrandale notebook from early 2010, which reason is there to upgrade to a new Ivy Bridge one now 3 years later?

So there is no reason for people to buy anything? It never hold them back before when they felt they could afford it.

Its a fact savings are going up fast and people are not spending.

 

[guskline]

I just built a new system to replace my old Intel® Core™ i7-860 home system. I built this system with an Intel Core i7-3770K, EVGA GTX 660ti, Intel SSD 335 240GB, a new secondary touch screen monitor and Windows 8. While I am very happy with everything else on the build I am not a big fan of Windows 8 and the metro interface. An old statement comes to mind when using the metro interface, "Insanity: doing the same thing over and over again and expecting different results." Albert Einstein

I hear you! Either Start8 or Startisback will make you much happier.

 

[Idontcare]

Capex danger. Be alert.

Too bad if true. There's a lot of people out their in the supplier chain whose jobs depend on those capex budgets coming through. If it doesn't, they are out on the street

 

[Unoid]

I don't think it's that big of a deal. They still paid 1billion in dividends and BOUGHT stock back for 500Million $.

I don't think we'll see a big upswing for another year until their mobile (atom) processors are on the leading edge node. and secondly, when Intel takes in more customers to use their foundries (they're just now getting into this business seriously), Think of TSMC style production on Superior Intel FABS.

The fab side may take a couple years but intel is going to do quite well.

EDIT: and yes I own a lot of intel stock