Intel Conference Call Highlights

Intel

reported its third quarter earnings on Tuesday. Shares of the company are down 3%. Below are some key highlights from its conference call: Growth and Operations: • Revenue and earnings per share both set new records, with strong performances from the PC and the Data Center groups. • In the Data Center, we saw double-digit revenue growth across all four major market segments. • Enterprise grew 11%. Networking grew 16%. And HPC and cloud service providers grew 22% and 34% respectively. • In the Mobile and Communications group, losses declined sequentially, and that's a trend we need to see continue. • Tablet volume was nearly 15 million units, and we remain on track to our 40 million unit goal for 2014. • We sold record volumes of PC, server, Internet of Things, phone and tablet products. • The diversity and scale of our products uniquely position us across the breadth of devices that compute and connect. • Results demonstrate that we are building on our success in the PC and Data Center segments to successfully pursue adjacent opportunity. • PC Client group revenue was up 9% from a year ago. • Our Data Center group revenue grew 16% from a year ago, with platform volumes up 6% and platform average selling prices up 9%. • We are seeing robust growth rates across all the segments of our Data Center business. New Products: • The PC Client group launched Core M, a new family of products with full core performance in both compute and graphics in a fanless design, enabling break through designs and form factors. • The first of these systems will be available by the end of this month. • We also launched the new Xeon E5 processor, formally known as Grantley. • This product family provides leadership features and performance for compute, storage, and network work flows. • Formally launched just five weeks ago, E5 is already 10% of our DP or two-socket volume. Financials: • Focusing on our third quarter results, revenue came in at $14.6 billion, up • 8% from a year ago. • Both the PC Client group and the Data Center group achieved better growth than we expected at the beginning of the quarter. • Operating income for the third quarter was $4.5 billion, up $1 billion and 30% from a year ago. • The company generated $3.3 billion of net income for the third quarter, up 12% from a year ago. And earnings per share was $0.66, up 14% from a year ago. • The business continued to generate significant cash, with over $5.7 billion of cash from operations in Q3. • We purchased $2.4 billion in capital assets, paid $1.1 billion in dividends, and repurchased over $4 billion of stock. • Total cash balance at the end of the quarter was roughly $16 billion, down approximately $1.7 billion from the prior quarter. • Our net cash balance, total cash less debt, is approximately $2 billion. And inclusive of our other longer-term investments, it is more than $6 billion. • This is down by almost $2 billion from the second quarter. • We are forecasting the midpoint of the revenue range at $14.7 billion, up 1% from the third quarter. • In the third quarter, we grew revenue 8% and grew operating profit 30% versus last year. • In the data center, we continue to innovate our products, bringing increased differentiation and value to our customers.