Even before the publication of Intel quarterly report for the first three months of the year, it was clear that the finance of company is not in big trouble. In the first quarter the PC market declined more strongly than expected - more than 10% compared to the first quarter last year. Intel were selling anti-virus packages, cellular modems, and services, including - the production of contract semiconductor platforms for smartphones and tablets. Revenues from sales of solutions for smartphones and tablets, as recognized by the General Director of the company, is still small.
Overall for the quarter Intel raised $ 12.6 billion and $ 2 billion of net income (operating income was $ 2.5 billion). Compared with the previous quarter revenue fell by 7% (was $ 13.5 billion) and net profit - 17% (it was $ 2.5 billion). But this is not terrible, the transition from the fourth quarter to the first - is always hard .When compared to the first quarter last year, Intel revenue declined by 2%, and net profit - by 25%. In other words, the company felt the whole charm of the fall in sales of computers in the current first quarter.
According to the company expects second-quarter revenue will fall from $ 13.4 billion to $ 12.4 billion : even under the most optimistic scenario, Intel earnings in the second calendar quarter will be less than last year (when it was $ 13.5 billion). This is a very bad symptoms for the industry.
All Intel hopes are associated with the second half of the year. The company will start mass-production of 14-nanometer processors, which will reduce costs and will reap the rewards of years of the processors generation Haswell.
In conclusion, a few words about the key moments of the first quarter. Client Products Group has reduced its quarterly revenue by 6.6% and annual - 6%, earning $ 8 billion group server products brought the company a 6.9% decrease in revenue in respect of the quarterly and 7.5% lower yearly - that's $ 2, 6 billion in the period. A group that includes other Intel products, earned $ 1 billion, which is equivalent to the quarterly decrease of 3.9% per year - by 9%.