Intel q3 earnings 9% yoy -> record quarter

[krumme]

"Earlier this week, Intel announced their earnings for the third quarter of their 2016 fiscal year, and the company achieved new records across their business lines, resulting in a record quarterly revenue of $15.8 billion USD, up 9% compared to Q3 2015. Intel achieved margins of 63.3%, up 0.3% year-over-year, and their operating income increased 6% to $4.5 billion"

http://www.anandtech.com/show/10778/intel-announces-q3-fy-2016-earnings-record-quarterly-revenue

Dcg continues to rake in profit with a revuenue at 4.5B.

"Looking forward, Intel is forecasting revenues for Q4 at $15.7 billion, plus or minus $500 million, and margins of 61%."

All as expected imo for the two cpu players. Can you find anything out of the expected?

 

[witeken]

Happy to see 3D XPoint getting qualified still in 2016, since they were so quite about it. Still, time from announcement to market might have been a little better.

Data center didn't perform all that good this year at "only" 10% or so. Intel will only start buying 10nm equipment this quarter...

 

[Nothingness]

All as expected imo for the two cpu players. Can you find anything out of the expected?

Yes: DCG expected growth has been reduced. This certainly wasn't expected given how much the stock lost.

 

[witeken]

Yes: DCG expected growth has been reduced. This certainly wasn't expected given how much the stock lost.

It's still growth and it's still 10% vs. 15%.

I think the main reason for the sell off is the down forecast: normally Intel's best quarter is Q4. To me the 10% DCG does not surprise me at all. It's already quite some time ago that it did 15%.

 

[krumme]

Its a damn fine result imo even if its from a monopoly like situation it still is executed perfectly. People is just used to it. Intel have a portfolio of cash cows on their hand. What they need is some obvious stars. 3d memory could turn into such a star and i think its close to their core competences and culture to do stuff like that. Unlike batling with samsung qcom and apple on less engi type of stuff.

 

[Nothingness]

Its a damn fine result imo even if its from a monopoly like situation it still is executed perfectly.

Oh yes definitely a fine result! But not perfect execution. The mobile fiasco is an exemple. Another example are the current lay-offs: Intel blindly decided to close sites across Europe without even checking what they were doing; they had to call back some teams because they were working for modems for Apple; talk about a failure

Anyway I agree, Intel is doing d*mn well.

 

[witeken]

Oh yes definitely a fine result! But not perfect execution. The mobile fiasco is an exemple. Another example are the current lay-offs: Intel blindly decided to close sites across Europe without even checking what they were doing; they had to call back some teams because they were working for modems for Apple; talk about a failure

Source?

But in any case it's a double or even single edged sword. Those people losing their job is no fun of course (106K after Q3, down from 112K after Q1 both including altera and down 1K from a year ago, so I guess the acquisition might have something to do with it and I wonder how much they're actually going to save versus their employee count/spending rate a year ago), and meanwhile BK is telling investors the reorganization is going better than expected and will save them many $$$ going forward. I wonder what will happen to R&D budget next year.

 

[dealcorn]

From a shareholder perspective, Intel achieved restructuring savings even if they overshot some targets and had to go back and rehire some folks. That is not unusual in large company restructuring efforts. That Intel achieved the savings with little unanticipated loss of business represents good execution.

I was disappointed in the con call comment that the initial Purley release lacks 3D XPoint support. However, if Breezy is correct that Kaby Lake is the introduction vehicle for 3D XPoint as a DRAM replacement, it appears Intel is ahead of schedule. Strong market acceptance of 3D XPoint as a DRAM replacement in ultra mobile markets may bode well for Intel's foundry efforts. http://seekingalpha.com/article/401...e93f33c3dbb5398f8e2edef2cf96bfa&uprof=46#alt1

 

[witeken]

However, if Breezy is correct that Kaby Lake is the introduction vehicle for 3D XPoint as a DRAM replacement,

Yes. For those who did not click the link.

 

[AtenRa]

Source?

I can confirm Intel closed lots of offices across Europe.

 

[witeken]

I can confirm Intel closed lots of offices across Europe.

This just makes me wonder: if you can close a bunch of offices without even looking what they're doing, then what was their purpose, why were they there in the first place?

 

[AtenRa]

This just makes me wonder: if you can close a bunch of offices without even looking what they're doing, then what was their purpose, why were they there in the first place?

I dont know if Intel shut them down without knowing what they were doing, but i can tell you that Intel Greek office no longer exists among other offices across Europe. Intel European Headquarters for south Europe has moved to Spain.

 

[Nothingness]

I dont know if Intel shut them down without knowing what they were doing

They did shut whole teams that were re-hired a few weeks later to complete their job. Guess how motivated these engineers now are