Intel Reports Full Year Revenue Despite Slow PC Sales
Intel has managed to keep its revenue at high levels during 2015, mainly due to its wealthy Data Center, Internet of Things (IoT) and Non-Volatile Memory businesses. Intel today reported full-year revenue of $55.4 billion, operating income of $14.0 billion, net income of $11.4 billion and EPS of $2.33. The company generated approximately $19.0 billion in cash from operations, paid dividends of $4.6 billion and used $3.0 billion to repurchase 96 million shares of stock.
Full-Year 2015 Business Unit Trends
- Client Computing Group revenue of $32.2 billion, down 8 percent from 2014.
- Data Center Group revenue of $16.0 billion, up 11 percent from 2014.
- Internet of Things Group revenue of $2.3 billion, up 7 percent from
2014. - Software and services operating segments revenue of $2.2 billion,
down 2 percent from 2014. - Non-Volatile Memory Solution Group revenue up 21 percent from 2014
Intel also said fourth-quarter net income slipped to $3.6 billion, or 74 cents a share, from $3.7 billion, or 74 cents, a year earlier. Revenue climbed to $14.9 billion.
Fourth-quarter revenue in Intel’s PC-chip division fell 1.2 percent to $8.76 billion, or 59 percent of total sales. The data center group posted sales of $4.31 billion.
The world’s biggest semiconductor maker also predicted first-quarter sales that will fall short of some estimates, held back by the continued slump in demand for personal computers.
Revenue in the current period will be $14 billion, plus or minus $500 million, the Santa Clara, California-based company said.
Though Intel’s PC-chip division has been suffering, it still provides the revenue and volume of orders needed to justify the company’s investment in its factories. That production technology has helped Intel stay ahead in servers.
Intel’s phone-chip business may finally be beginning to achieve a turnaround. The company is increasing production of modem chips, a possible indication it could win orders from a major manufacturer such as Samsung Electronics or Apple.
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