Intel has $55.9B record year, ships 46M tablets

[witeken]

Intel Reports Record Full-Year Revenue of $55.9 Billion

SANTA CLARA, Calif., January 15, 2015 -- Intel Corporation today reported full-year revenue of $55.9 billion, operating income of $15.3 billion, net income of $11.7 billion and EPS of $2.31. The company generated approximately $20.4 billion in cash from operations, paid dividends of $4.4 billion, and used $10.8 billion to repurchase 332 million shares of stock.
For the fourth-quarter, Intel posted revenue of $14.7 billion, operating income of $4.5 billion, net income of $3.7 billion and EPS of $0.74. The company generated approximately $5.8 billion in cash from operations, paid dividends of $1.1 billion and used $4.0 billion to repurchase 115 million shares of stock.
"The fourth quarter was a strong finish to a record year," said Intel CEO Brian Krzanich. "We met or exceeded several important goals: reinvigorated the PC business, grew the Data Center business, established a footprint in tablets, and drove growth and innovation in new areas. There is more to do in 2015. We'll improve our profitability in mobile, and keep Intel focused on the next wave of computing. "

PC Client Group revenue of $34.7 billion, up 4 percent from 2013.
Data Center Group revenue of $14.4 billion, up 18 percent from 2013.
Internet of Things Group revenue of $2.1 billion, up 19 percent from 2013.
Mobile and Communications Group revenue of $202 million, down 85 percent from 2013.
Software and services operating segments revenue of $2.2 billion, up 1 percent from 2013.

Which means they shipped about or slightly more than 16M tablets in Q4 (5M + 10M + 15M = 30M for Q1-3), which means they could increase their market share by another 50% if they sell 15-20M per quarter in '15.

Another interesting tibdit is:
"The total number of employees was up 1K from the third quarter to 107K."

Which is about flat Y/Y (slightly down from 108K), which should be odd given that Intel announced a 5% lay-off a year ago for 2014.

Another point more of interest for AnandTech is Intel's 10nm spending. The front-end of Intel's 10nm spending impacted Q4 revenue by 0.5 points. For Q1:

- 1.5 points: Higher factory start-up costs

10nm seems to be on track for HVM early next year.

For full 2015:
- 1.0 point: Higher factory start-up costs
The tablet contra-revenue will fade away:
+ 0.5 point: Tablet Impact

Intel will also spend lots of R&D, to make sure certain companies don't switch away from Intel :
"R&D spending is expected to be approximately $12.2B, up from 2014."

Full CFO Commentary

SeekingAlpha coverage and earnings call: http://seekingalpha.com/symbol/INTC

 

[Shehriazad]

I guess Intel has been long established as the Microsoft of microprocessors now .

Good for them. Let's hope they don't pull a windows 8 anytime soon. xD

 

[Phynaz]

A little bit of back of the napkin math tells me AMD may have picked up about a half of point of market(revenue) share from Intel.

 

[witeken]

Q&A takeaways:

Stacy reiterated 2 year Tick-Tock (gross margin, which is affected by process technology) model.
BK said they wouldn't talk about 10nm until the end of the year. It seems 10nm will be a big surprise for the industry at IM '15, maybe even later.
SoFIA's got several design wins, will probably go into the market (late) in Q2.
R&D up in process technology, DCG and IoT for 2015.
Skylake-Broadwell interference: Skylake not slowed down because of BDW, BDW-U/Y early because of market decisions. Skylake is just "change of glass in the factory", no change in factory, so it wouldn't make any sense to delay that product.

 

[jpiniero]

A little bit of back of the napkin math tells me AMD may have picked up about a half of point of market(revenue) share from Intel.

I don't know how you can say that when WW PC Sales were up 1% but Intel said their shipments were up 6%. AMD probably didn't do that badly though.

 

[NTMBK]

Mother of god, they lost $1.1 billion on mobile.

 

[witeken]

Mother of god, they lost $1.1 billion on mobile.

If the mobile business didn't exist, the cost savings would only be a couple hundred millions per quarter. Remember that there's also still contra-revenue.

 

[tential]

But Contra-Revenue....

 

[Phynaz]

I don't know how you can say that when WW PC Sales were up 1% but Intel said their shipments were up 6%. AMD probably didn't do that badly though.

I didn't say shipments.

 

[Arachnotronic]

Mother of god, they lost $1.1 billion on mobile.

That's the price it costs to play in this market when you're coming in from behind.

 

[Arachnotronic]

A little bit of back of the napkin math tells me AMD may have picked up about a half of point of market(revenue) share from Intel.

Could you show your calculations? I'd be most interested in seeing how you arrive at that.

 

[Phynaz]

According to Rueters global PC shipments fell 2.4% Q3-Q4.
According to Rueters Intel's PC group sales fell 3% Q3-Q4.

If Intel's sales declined more than the market then somebody else had to pick up those additional sales Intel lost. In this case there's only one somebody else.

 

[tential]

According to Rueters global PC shipments fell 2.4% Q3-Q4.
According to Rueters Intel's PC group sales fell 3% Q3-Q4.

If Intel's sales declined more than the market then somebody else had to pick up those additional sales Intel lost. In this case there's only one somebody else.

Chromebooks that are not Intel or AMD based?

 

[flexy]

Good for them. Let's hope they don't pull a windows 8 anytime soon. xD

Hmmm...let me see:

(Obviously this only concerns "enthusiasts", not the man on the street who runs the CPUs at stock)

* crazy temperatures due to gap between die and IHS when you overclock
* supposed "low quality" TIM
* did I say really CRAZY temperatures?

Oh..wait. Let's "correct" this failure and release a "new" CPU, with better thermals and better overclocking potential...

"Oh wait..let's move the VRM away from the die again next toc, think that the VRMs on die probably wasn't THAT smart an idea..."

Comes pretty close to what Microsoft did with Win8. Not saying Haswell is a "bad" CPU, by a long-shot, but for enthusiasts not so much. (At least before Devil's Canyon...just saying...)

 

[tweakboy]

Wow I will take 10 thousand of that.. and Im happy camper... hehe gl

 

[frozentundra123456]

Chromebooks that are not Intel or AMD based?

Are chromebooks classified as PCs? How about consoles? Are they classified as PCs?

In any case, AMD could have picked up some sales. There are a lot of Kabini laptop and even desktops for sale at attractive prices, at least to those who dont know how anemic their performance is. (Dont get upset AMD fans, I feel the same about Atom laptops and desktops).

 

[Arachnotronic]

According to Rueters global PC shipments fell 2.4% Q3-Q4.
According to Rueters Intel's PC group sales fell 3% Q3-Q4.

If Intel's sales declined more than the market then somebody else had to pick up those additional sales Intel lost. In this case there's only one somebody else.

Not sure this math works. Sales != shipments. Look at the unit trends because PC unit decline may have slowed as a result of cheap computers with lower ASP chips gaining traction.

 

[uclaLabrat]

If the mobile business didn't exist, the cost savings would only be a couple hundred millions per quarter. Remember that there's also still contra-revenue.

Bloomberg is claiming it's more to the tune of $4.2 B. That's one hell of a bath.

http://www.bloomberg.com/news/2015-...s-would-have-sunk-most-rivals.html?cmpid=yhoo

 

[R0H1T]

Bloomberg is claiming it's more to the tune of $4.2 B. That's one hell of a bath.

http://www.bloomberg.com/news/2015-...s-would-have-sunk-most-rivals.html?cmpid=yhoo

That's because it is in excess of $4 billion, a billion $ loss was just for the single quarter & each quarter bled a billion+ on IoT or whatever they're calling it now.

 

[Enigmoid]

Mobile has been losing money for years, way before contra-revenue.

 

[Arachnotronic]

Intel has lost twice AMD's entire market cap in a year on mobile. About 1.5X an AMD last year. I really hope those billions lead to strong products in the coming years...

 

[positivedoppler]

If you lose a billion by shipping 16 million craplets, that means they're gift wrapping each slowtrail with a $50 bill?!? Holy smoke!!!! They getting their butt handed to them by qualcomm

 

[ThatBuzzkiller]

I'd advise Intel by now that they should drop out of mobile segment ...

 

[waffleironhead]

I didnt even know intel made tablets, let alone 46 million of them.

 

[AtenRa]

Still they make lots and lots of money from Desktop/Notebook/Servers but even with contra revenue they didnt reach the 50M tablets mark for 2014.
Cherrytrail will have a tough year, i fail to see how they will sell 70M tablet SoCs in 2015 without contra revenue.