The Santa Clara chip maker's profit slid 27 percent compared to one year ago.
So the sky might not be falling, but Intel's fourth quarter profit sure did. Intel reported net income of $2.5 billion for the fourth quarter of 2012, down 27 percent from $3.4 billion in Q4 2011. As one might expect, the world's largest chip maker was hurt by a slowdown in PC sales as the market shifts towards mobile devices like tablets, smartphones, and hybrid laptops. Nevertheless, Intel said it wasn't surprised by its Q4 performance.
PC gaming is alive and well, as evidenced by strong Kepler GPU sales that helped steer Nvidia towards record revenue of $1.20 billion for the third quarter of its fiscal 2013 period ended October 28, 2012. That's a gain of 15.3 percent compared to the previous quarter, and a 12.9 percent improvement versus last year, Nvidia said, adding that its energy efficient Kepler GPU architecture continued to make excellent headway in the market place.
Intel, the world's largest semiconductor player, is susceptible to market conditions just like every other company, and right now PC sales are in a slump. Serving up chips to the PC market is Intel's bread and butter, so it strives or struggles at a similar clip, though it's all relative. What do we mean? Well, Intel said it generated $13.5 billion revenue during the third quarter, which is an obscene amount of money, and even a little better than analysts were expecting, but only after the chip maker lowered its Q3 sales forecast.
Hewlett-Packard boss Meg Whitman isn't ready to hit the panic button, even if stockholders are after the company announced financial results for its third quarter ended July 31, 2012. There were some sharp declines in the report, including an $8.9 billion net loss, down a whopping 568 percent from the same quarter one year ago. Net revenue fell 5 percent year-over-year to $29.7 billion, but despite it all, Whitman sees progress being made in HP's comeback tour.
There was a time when PCs practically sold themselves, but that was before everyone started crowing about the tough economic landscape and other factors that, as Dell explains, makes growing a PC business "challenging," a word the OEM used when describing its second quarter financial results. Amid slumping sales and declining profits, Dell said it's in the process of transforming its business with a clear strategy focused on long-term results.
Lenovo's investors have to be loving life right about now. The OEM is on top of its game and kept the sales momentum going by announcing yet another strong quarter in which net income (profit) for the three month period ended June topped $141.1 million, up 30 percent year-over-year. Lenovo's PC consumer business in mature markets has more than quadrupled in mature markets since 2008, and the company nearly doubled its PC revenue in emerging markets outside of China, the OEM said.
Auction site eBay is rolling in riches as its online business continues to boom. Revenue for the second quarter ended June 30, 2012 spiked 23 percent year-over-year to $3.4 billion, eBay said. Second quarter income on a non-GAAP basis reached $730 million, up 16 percent compared to one year ago, while GAAP income hit $692 million. PayPal is a big reason why eBay is doing so well these days.
By all means, Intel was on top of its game in the second quarter of 2012. The Santa Clara chip maker reported quarterly revenue of $13.5 billion, operating income of $3.8 billion, and net income of $2.8 billion. Talk all you want about the PC sales slump, Intel still performed well, with its PC Client Group pulling in $8.7 billion in revenue, up 3 percent sequentially, along with its Data Center Group adding another $2.8 billion (up 14 percent sequentially). If the numbers are so strong, why is Wall Street on edge?
Scanning AMD's financial report for the first quarter of 2012, you would think the Sunnyvale chip maker is in big trouble. Revenue was $1.59 billion, a nice number if not for the fact that it represents a net loss of $590 million, or $0.80 cents per share, along with an operating loss of $580 million. That's a 6 percent sequential decrease and a 2 percent decrease year-over-year. Non-GAAP earnings were $0.12 a share. So why wouldn't investors want to hit the panic button?
Verizon had it going on in the first quarter of 2012. Solid performance in both wireless and wireline business segments led to a consolidated double-digit percentage growth in year-over-year quarterly earnings results, a 4.6 percent leap in year-over-year quarterly revenue growth to $28.2 billion, and $6 billion in cash flow from operating activities, up $922 million compared with the same quarter in 2011.