From EETimes: Intel reported 3% increase in revenue and 6% increase in profit, year over year, in its earnings call on Thursday. The company’s Q4 results were mixed, however, attributing the results to the PC business stabilizing while tablet and datacenter business grew modestly. Intel also offered additional information about Fab 42, which reports said was closing. The space, instead, will be held for “future technologies,” and Intel is housing 14-nm process in existing buildings.
Asked during the earnings call about Fab 42, Brian Krzanich, Intel’s chief executive said, “When you start these construction projects, you have to start them three years in advance. They are some of the most complex construction projects imaginable. We started this one three years ago. Our view of the PC industry and PC growth three years ago was much more robust than it is today.”
Krzanich went on to explain how the time it took to get the project started allowed Intel to react to the lower-than-expected demand for microprocessors. “We brought it up until the shell was complete and we held back putting equipment in until the demand requirement comes about,” he said, adding that the time taken to do so is part of the procedure that has been in place at Intel for the thirty years Krzanich spent in manufacturing at the company.
After dropping 3% year-over-year in Q3, Intel's PC CPU division sales, which accounted for 62% of revenue, were flat year-over-year in Q4. The division's operating profit increased 20% to $3.4B. Volumes rose 3% quarter-over-quarter and year-over-year; ASPs were flat quarter-over-quarter and down 2% year-over-year. Operating profit rose 11% to $1.46 billion. The company had $17.8 billion in cash/investments at the end of Q4, and $13.4 billion in debt. For the fourth quarter revenue came in at $13.8 billion up 3% from a year ago. Gross margin of 62% was flat compared to the third quarter
According to Stacy Smith, Intel’s chief financial officer, operating income for the fourth quarter was $3.5 billion up 12% from a year ago. Intel’s earnings per share was $0.51 up 6% from the year ago. For the full year 2013, the company’s revenue was $52.7 billion, its gross margin was 60%, operating income was $12.3 billion, net income was $9.6 billion and earnings per share was $1.89.
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