The sky didn't fall far for Intel, which met its revenue target for Q1.
Analysts can crow all they want about how the PC market is disintegrating, the world's largest semiconductor player still made a killing. We're of course referring to Intel, which today posted first quarter revenue of $12.6 billion, operating income of $2.5 billion, and net income of $2 billion. All of those are down to some extent, but how many businesses would jump at the chance to switch places with Intel?
"Amidst market softness, Intel performed well in the first quarter and I'm excited about what lies ahead for the company," said Paul Otellini, Intel president and CEO. "We shipped our next generation PC microprocessors, introduced a new family of products for micro-servers and will ship our new tablet and smartphone microprocessors this quarter. We are working with our customers to introduce innovative new products across multiple operating systems. The transition to 14nm technology this year will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace."
Intel's financial report comes just days after market research firm International Data Corporation (IDC) said global PC shipments suffered the worst year-on-year decline since it began tracking the PC market in 1994. And yes, a slowdown in system sales did affect Intel, but not as much some might have thought.
The Santa Clara chip maker's PC Client Group revenue totaled $8 billion for the quarter, down 6.6 percent sequentially and down 6 percent year-over year. Meanwhile, Intel's Data Center Group added another $2.6 billion, which is down 6.9 percent sequentially but up 7.5 percent year over year.
Intel could have done better, but still, it's not a bad way to go out for Otellini, who plans to retire as chief next month. Intel's Board of Directors hasn't found a replacement yet, but whoever it ends up being, he or she will have the immediate task of navigating Intel back in a positive direction in a market place that's now heavily dominated by mobile devices.