Intel earned $6.6 billion from processor sales in the past quarter, up from $10.3 billion a year earlier. Partly as a result, Intel’s turnover fell by 28 percent.
The company had already expected its quarterly figures to be lower, but the results are on the low side of those expectations. Revenue from the Client Computing Group business, which includes processors, fell as much as according to Intel there is less demand for CPUs among consumers and educational institutions. Business customers, such as shops and PC builders, also want to have less inventory themselves, which also has consequences for Intel’s processor sales.
Operating income fell even more than turnover: by 82 percent. In the past quarter, Intel earned $0.7 billion from the CCG business, up from $3.8 billion from CPUs and other products a year earlier. According to the company, this decrease is due to less turnover, but also because Intel itself kept a larger stock and invested in products and processes, and because the company sold relatively more Intel 7 chips than other CPUs. Intel therefore earns less with those Intel 7 CPUs than with other CCG products.
Comparable declines can be seen at the Datacenter and AI Group, according to Intel because the market here is shrinking and competition is fiercer. Here too, Intel points to extra investments as a cause of the decline in operating income, in addition to extra costs. The Network and Edge Group, through which the company sells platforms and other products for cloud computing and telecom networks, maintained revenue of $2.1 billion, the same as last year. However, operating income here also fell by 84 percent, again due to additional investments.
Intel’s smaller businesses did grow, with Mobileye the biggest riser. Here sales grew by 59 percent to $ 565 million. Operating income here also grew 71 percent to $210 million. Intel Foundry Services rose 30 percent to $319 million. This branch made a small loss, as the company spent more money to support strategic growth.
Total quarterly and annual figures
Intel had a turnover of 14 billion dollars, 28 percent less than a year earlier. Converted, the quarterly turnover was 12.9 billion euros. Net income fell 92 percent to $400 million; converted, this is about 368 million euros. Last year this was still 4.7 billion dollars.
With the quarterly figures, Intel also announced the annual figures, which were also less than a year earlier. The company recorded a turnover of 63.1 billion dollars, converted to 58.0 billion euros. This is 16 percent less than the $74.7 billion in revenue for 2021. Net income fell by 65 percent from $21.7 billion to $7.6 billion. Converted, the net income was 7.0 billion euros. Intel expects the decline to continue and expects to achieve 40 percent less turnover next quarter than in the first quarter of 2022.
The company is the announced cuts by, among other things, making sharper choices in terms of investments. In 2023, the company aims to implement $3 billion in budget cuts.
