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Earnings

Otellini's last quarter

Subject: General Tech | April 17, 2013 - 12:44 PM |
Tagged: Intel, otellini, earnings

The downturn in the PC market has depressed the earnings of Intel during Paul Otellini's last quarter as head of the company, but not as badly as many companies thanks to decent sales of data centre products.   Their overall earnings are down $1bn from this quarter last year with their PC sales down 6.6% but their data centre sales up 7.5% when compared to Q1 2012.  The numbers are not so rosy when you look at the last year of sales, PC down 6% and data centre down 6.9%, in line with expectations but far from good news.  Intel has come a long way since 1974 when he first joined the company but even they are not immune to the decline in sales which has been hurting the industry recently.  Get the full sales numbers at The Register.

otelline.jpg

"After 39 years at Chipzilla and over 80 earnings calls Paul Otellini has just finished his final one before stepping down in May. He didn't so much leave with a bang as a whimper.

The company booked $12.6bn in revenue for Q1 2013, down nearly a billion from the last quarter, and profits dropped 25 per cent to $2bn, over half of which will be given out as a dividend and another $553m used to buy back 25 million Intel shares. The results were broadly in line with analyst's expectations and Intel stock is up slightly in late trading."

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Tech Talk

Source: The Register

Podcast #199 - Ivy Bridge Desktop and Mobile reviews, Intel and AMD Earnings, and a Gold Motherboard

Subject: General Tech | April 26, 2012 - 04:59 PM |
Tagged: Z77, podcast, nvidia, Ivy Bridge, Intel, earnings, amd, 3770k

PC Perspective Podcast #199 - 04/26/2012

Join us this week as we talk about Ivy Bridge Desktop and Mobile reviews, Intel and AMD Earnings, and a Gold Motherboard

You can subscribe to us through iTunes and you can still access it directly through the RSS page HERE.

The URL for the podcast is: http://pcper.com/podcast - Share with your friends!

  • iTunes - Subscribe to the podcast directly through the iTunes Store
  • RSS - Subscribe through your regular RSS reader
  • MP3 - Direct download link to the MP3 file

Hosts: Ryan Shrout, Jeremy Hellstrom, Josh Walrath, and Allyn Malvantano

Program length: 1:06:54

Program Schedule:

  1. Introduction
  2. 1-888-38-PCPER or podcast@pcper.com
  3. http://pcper.com/podcast
  4. http://twitter.com/ryanshrout and http://twitter.com/pcper
  5. Intel Core i7-3770K Ivy Bridge LGA1155 Processor Review
  6. Intel Core i7-3720QM - Ivy Bridge For Mobile Review: Monster Kill!
  7. NVIDIA continues to tease, sends us a crowbar
  8. ASUS Demonstrates Z77 Motherboard Features at PC Perspective
  9. ASUS Overclocks Ivy Bridge To 7 GHz, Breaks World Records
  10. Intel Announces Q1 2012 Earnings: Not a Record, but Close
  11. AMD Q1 2012 Earnings Analysis: Looking Back and Looking Forward
  12. New mLink PCI-E to Thunderbolt Enclosure Shown Off at NAB 2012
  13. Hardware / Software Pick of the Week
    1. Ryan: ECS GOLDEN BOARD!!!!!!!!!!!!!!!!!!!!
    2. Jeremy: 25GB free on Microsoft SkyDrive
    3. Josh: I like this case. Not exactly affordable, but still really nice.
    4. Allyn: Is it a pen or is it a pencil?
  14. 1-888-38-PCPER or podcast@pcper.com
  15. http://pcper.com/podcast   
  16. http://twitter.com/ryanshrout and http://twitter.com/pcper
  17. Closing

Source:

Intel Announces Q1 2012 Earnings: Not a Record, but Close

Subject: Editorial | April 23, 2012 - 05:12 PM |
Tagged: trinity, Q1, Ivy Bridge, Intel, earnings, atom, arm, amd, 2012

Guess what? Intel made money. A lot of money. This is not surprising. The results were not record breaking, but they did beat expectations. Intel had a gross revenue of $12.9 billion for the quarter, with a net income of $2.7 billion. Gross margins decreased (slightly) to 64%, but the reasons for this are pretty logical as we discover down below. Compared to Q4 2011, results are still significantly down, but this is again expected due to seasonal downturns. In Q4 they had $13.9 billion in gross revenue and $3.4 billion in net income with a gross margin of 64.5%.

 
Currently Intel is showing inventory at near historic lows, and this is due to a variety of factors. The PC market has been growing slower than expected due to the hard drive shortage that started last fall. Intel has adjusted manufacturing downward to account for this, and has worked to ramp 22 nm products faster by cutting back 32n production and converting those 32 nm lines. Intel is very aggressive with Ivy Bridge, and it expects 25% of all shipments in Q2 to be 22nm products. This is probably the fastest and most aggressive ramp that Intel has ever done, and it will continue to put AMD in a hole with their 32 nm production.
 
intel_logo.jpg
 
The second half of the year should see some significant growth on the PC side. The primary push will be the release of Windows 8 from Microsoft. This, combined with the near complete recovery of hard drive production, should push PC growth the record levels. Ultrabooks are an area that Intel is spending a lot of money to promote and develop with their partners. There are some 26 Ultrabook designs on record so far, and Intel expects this number to rise rapidly. The big push is to decline the overall price of Ultrabooks, as well as enabling touch functionality for a more affordable price. While not mentioned during the conference call, AMD is also pushing for ultra-thin notebooks, and once Trinity enabled products hit the street, we can expect a much more aggressive price war to be waged on these products.
 
Smart phones are another area that Intel is actively trying to expand into. This past quarter we saw the introduction of the Orange, Lava, and Lenovo phones based on the Medfield platform. So far these have been fairly well received by users and media alike, though the products have certainly had some teething issues. Intel still has a lot of work to do, but they finally realize the importance of this market. Intel expects that there will be 450 million smart phones shipped in 2012 (from all manufacturers), and that it is expected to grow up to 1 billion shipped a year by 2015/2016 (if not sooner). Intel wants to get into those phones, and is adjusting their Atom strategy to fit it. While in previous years Atom lagged behind other processor development from Intel, they are pushing it to the forefront. We can expect to see Atom based products being manufactured on 22 nm, and then aggressively pushed to 14 nm when that process node is available. Intel feels that they have a significant advantage in process technology that will directly impact their success in achieving higher rates of utilization across product lines in the mobile sector. If Intel can offer an Atom with similar performance and capabilities, tied with a significantly lower TDP, then they feel that a lot of phone manufacturers will look their way rather than use older/larger/more power hungry products from competitors.
 
Finally, Intel essentially has little interest in becoming a foundry for other partners. They are currently working with a handful of other countries to produce products for them, but I think that this might be a short term affair. Intel will either stay with a few partners to produce a low quantity of parts, or Intel will learn what they have to about producing products like FPGAs and eventually start producing chips of their own. When Intel fabs their own parts, they essentially get paid twice as compared to foundries or 3rd party semiconductor companies.
 
Intel continues to be profitable and successful. Ivy Bridge is going to be a very big product for Intel, and they are going to push it very hard through the rest of this year. Mobile strategies are coming to fruition and we see Intel getting their foot in the door with some major partners around the world. Servers, desktops, and notebook chips still comprise the vast majority of products that Intel ships, but mobile will become a much stronger player in the years to come. That is if Intel is able to execute effectively with accelerated Atom development on smaller process nodes. ARM is still a very worthy competitor, and a seemingly re-invigorated AMD could provide some better competition with Trinity and Brazos 2.0 in the notebook/tablet market.
 
Margins will be down next quarter due to the aggressive 22 nm ramp. With any new process there will be problems and certain inefficiencies at the beginning. As time passes, these issues will be resolved and throughput and yields will rise. Intel does expect a larger PC growth through the next quarter and a higher gross revenue. It will be interesting to see if Ultrabooks do in fact take off for Intel, or will competitors offer better price/performance for that particular market. Needless to say, things will not slow down through the rest of this year.
Source: Intel

NVIDIA Reports Q4 and FY2012 Earnings - Tegra 3, 28nm Kepler

Author:
Date: February 16, 2012
Subject: Editorial
Manufacturer: NVIDIA
Tagged: tesla, tegra 3, Q4, nvidia, kepler, geforce, FY2012, fermi, earnings

Quarter Down but Year Up

Yesterday NVIDIA released their latest financial results for Q4 2012 and FY2012.  There was some good and bad mixed in the results, but overall it was a very successful year for NVIDIA.

Q4 saw gross revenue top $953.2 million US with a net income of $116 million US.  This is about $53 million less in gross revenue and $62 million down in net income as compared to last quarter.  There are several reasons as to why this happened, but the majority of it appears to be due to the hard drive shortage affecting add-in sales.  Simply put, the increase in hard drive prices caused most OEMs to take a good look at the price points of the entire system, and oftentimes would cut out the add-in graphics and just use integrated.

tegra3.jpg

Tegra 3 promises a 50% increase in revenue for NVIDIA this coming year.

Two other reasons for the lower than expected quarter were start of the transition to 28 nm products based on Kepler.  They are ramping up production on 28 nm and slowing down 40 nm.  Yields on 28 nm are not where they expected them to be, and there is also a shortage of wafer starts for that line.  This had a pretty minimal affect overall on Q4, but it will be one of the prime reasons why revenue looks like it will be down in Q1 2013. 

Read the rest of the article here.

If you thought Intel did well wait until you see ARM

Subject: General Tech | February 1, 2012 - 12:24 PM |
Tagged: RISC, quarterly earnings, earnings, arm

For total dollar revenue over 2011 the only company that can touch Intel's earnings would be Apple, who actually contributed to Intel's growth over the past year.  When you talk about percentage growth over last year however ARM actually beat Intel's 21% growth, although not by much.  Their pre-tax growth approached 50% for the year and they blew away analyst's predictions both quarterly and yearly.  This probably has to do with the 2.2 billion ARM-powered chips sold globally over the past year, not just the new chips that power your phones and tablets but also chips they've been making for a long time which appear in vehicles, appliances and toys.  ARM's way of doing business is different from Intel who prefer to tie you into an all Intel hardware or no Intel hardware contract, ARM is happy if their chips co-exist with others on a device; they just want a chip in there.  As The Register points out, this flexibility as well as the release of an ARM compatible version of Windows 8 could make the coming years rather interesting.

poster__man_with_the_golden_arm_the_02_0.jpg

"ARM, the eponymous designer of the chip architecture, had a stonking 2011 with revenue and profits up as it tightened its hold on both embedded and generic computing.

Revenue for the last quarter of 2011 was up by more than 20 per cent on the previous year, to £137.8m, while profit before tax jumped more than twice that percentage to £69m. For the whole of 2011 the numbers are very similar, revenue hitting £491.8m ($773m) and profit topping £229.7m ($362m), rather better than analysts had predicted."

Here is some more Tech News from around the web:

Tech Talk

 

Source: The Register

Seagate Technology Provides Updated Financial Outlook

Subject: General Tech | November 29, 2011 - 12:23 PM |
Tagged: Seagate, hdd, earnings

It seems very interesting that Seagate is so upbeat about their earnings with the flooding in Thailand causing huge supply shortages of HDD world wide.  Last year at this time they were expecting 170 million units move, whereas this year is is 110-120 million units with demand outstripping supply.  That number does reflect some supply issues but perhaps not as bad as the issues faced by Western Digital and other manufacturers with a large presence in Thailand.  The profit being higher does show what happens when you have a product people want but cannot find; the price per unit quickly goes up and the business can still make a profit.  We can only hope that as supply returns to the chain that the price drops at the same speed it has risen.  We still do not have final word on Seagate's absorption of Samsung's HDD business, that will likely be in January.

CUPERTINO, Calif.--(BUSINESS WIRE)-- Seagate Technology plc (NASDAQ:STX) today updated its financial outlook for the December 2011 and March 2012 quarters.

The company continues to believe that, due to the industry impacts caused by the extensive flooding in Thailand, hard disk drive supply will be significantly constrained for several quarters. For the December 2011 quarter, the company believes the industry will ship between 110-120 million units.

The company believes the industry’s ability to manufacture and ship hard disks drives will gradually improve throughout calendar 2012. While this may alleviate some of the unit demand shortfall, it is expected that some companies will optimize unit shipments by manufacturing lower component count/lower capacity hard disk drives; thereby, only modestly offsetting the growing petabyte shortage. Because demand is estimated to significantly exceed supply during this time, pricing is expected to remain stable.

Financial Outlook
The company’s component and disk drive factories in Thailand have not been directly affected by the flood; however, the company’s ability to manufacture hard disk drives has been impacted due to external component supply constraints as first disclosed on October 12, 2011.

For the December 2011 quarter, the company now expects unit shipments of approximately 43 million units and revenue of approximately $2.8 billion. Gross margin as a percent of revenue is expected to be 150-300 basis points above the high-end of the company’s long-term, targeted gross margin range of 22-26%. Operating expenses (R&D and SG&A) are expected to be approximately $400 million. Expenses related to the acquisition of Samsung Electronics Co., Ltd’s (“Samsung”) hard disk drive business and any revenue or operating expenses of the acquired business following the closing date cannot be estimated at this time and are therefore excluded from this outlook. The company continues to expect to close the acquisition of Samsung’s hard disk drive business by the end of December 2011.

The company’s outlook for the March 2012 quarter assumes requisite regulatory approvals are received and the Samsung acquisition closes in December of 2011. The company also continues to work with its external suppliers to restore the component supply chain, and now expects that in the March quarter it will be capable of shipping a mix of products in terms of capacity per drive and expected market similar to pre-flood levels. Currently, for the March 2012 quarter, the company expects unit shipments to increase sequentially. Revenue is expected to be at least $3.75 billion and gross margin as a percent of revenue is expected to be at least 300 basis points above the aforementioned targeted range of 22-26%. The outlook for the March 2012 quarter excludes certain costs related to the integration of the acquired Samsung hard disk drive operations which cannot be estimated at this time.

The financial outlook provided today does not include the arbitration award previously disclosed on November 21, 2011.

Source: Business Wire

Podcast #177 - Lenovo Portable Monitor, GTX580M vs HD6990M, Hard Drive prices spiking and more!

Subject: Editorial | November 3, 2011 - 05:44 PM |
Tagged: x79, podcast, nvidia, Intel, hd6990m, gtx580m, earnings, amd, 6990m, 580m

PC Perspective Podcast #177 - 11/03/2011

Join us this week as we talk about a Lenovo Portable Monitor, GTX580M vs HD6990M, Hard Drive prices spiking and more!

You can subscribe to us through iTunes and you can still access it directly through the RSS page HERE.

The URL for the podcast is: http://pcper.com/podcast - Share with your friends!

  • iTunes - Subscribe to the podcast directly through the iTunes Store
  • RSS - Subscribe through your regular RSS reader
  • MP3 - Direct download link to the MP3 file

Hosts: Ryan Shrout, Josh Walrath, Jeremy Hellstrom, and Allyn Malvantano

This Podcast is brought to you by MSI Computer, and their all new Sandy Bridge Motherboards!

Program length: 1:06:02

Program Schedule:

  1. 0:00:28 Introduction
  2. 1-888-38-PCPER or podcast@pcper.com
  3. http://pcper.com/podcast
  4. http://twitter.com/ryanshrout and http://twitter.com/pcper
  5. 0:01:17 Lenovo ThinkVision LT1421 Portable Monitor Review: A Second Display for Road Warriors
  6. 0:03:42 Mobile GPU Comparison: GeForce GTX 580M and Radeon HD 6990M
  7. 0:16:50 iPhone 3GS / 4 / 4S Battery Life Testing - Putting the Conjecture to Rest
  8. 0:23:40 This Podcast is brought to you by MSI Computer, and their all new Sandy Bridge Motherboards!
  9. 0:24:30 AMD Reports Q3 2011 Results
  10. 0:31:35 Hard Drive Prices Spike on Thailand Flooding
  11. 0:39:40 Gigabyte brings Bluetooth 4.0 and WiFi to their X79 boards
  12. 0:44:04 Video Perspective: AMD A8-3850 vs Core i3-2105 on Battlefield 3
  13. 0:47:10 Intel Releases Updated SSD Toolbox
  14. 0:51:15 NVIDIA Upgrading GTX 560 to 448 CUDA Cores?
  15. 0:55:15 Hardware / Software Pick of the Week
    1. Ryan: Not Steam Uninstaller
    2. Jeremy: Maxwell Technologies HSN-1000 Nuclear Event Detector < wait what?!?! :)  or http://ca.movember.com/mospace/1422966/ Movember
    3. Josh: Gettin cheeeap:  http://www.newegg.com/Product/Product.aspx?Item=N82E16820227706
    4. Allyn: Electricsheep pre-rendered screen saver 
  16. 1-888-38-PCPER or podcast@pcper.com
  17. http://pcper.com/podcast   
  18. http://twitter.com/ryanshrout and http://twitter.com/pcper
  19. Closing

 

Source:

Intel Reports Q3 2011 Earnings

Subject: Editorial | October 19, 2011 - 05:29 PM |
Tagged: sandy bridge, Q3 2011, Intel, earnings, bulldozer, atom, amd

This should come as a shock to no one.  Intel made a lot of money this past quarter.  We again have seen new records in both gross revenue and net income.  GAAP revenue for the quarter came in at an astounding $14.2 billion.  Essentially that is the net revenue for AMD during a three year span.  Net income is again impressive at $3.5 billion.  In AMD terms that would be gross revenue for three quarters.  Truly there is a tremendous disparity between the two companies who are very bitter rivals.  It is no wonder AMD is starting to really fall behind.

All of the internal groups, except for one, have shown tremendous growth over the past year.  Notebooks have really lead the charge as of late, but both desktop and server markets have shown very favorable growth for the company.  Even the McAfee and Intel Communications divisions provided upwards of $1 billion to the bottom line.  The only area that Intel is lagging in is the Atom line.

intel_logo.jpg

When we look at the product offerings of Intel in server, desktop, and notebook markets we see they have a sizeable advantage in both process technology and performance per watt.  Intel has been shipping 32 nm chips for well over a year and a half.  On the desktop this has translated to modestly priced processors that have a much smaller die size yet comparable (and even superior) performance to the AMD products which are much larger in size and more expensive to produce.  On the server side we really have not seen AMD make any inroads since Intel took over that market in a big way once they released the QPI based designs which took away AMD’s last architectural advantages; HyperTransport and integrated memory controllers.

Read the rest of the article after the break.

Source: Intel

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