Santa Clara, California, July 16, 2014: Intel’s internet of Things (IoT) division and its datacenter unit have posted a second quarter growth of 24 percent and 19 percent, respectively.
The company’s second quarter results beat street expectations. Intel reported second quarter earnings of US $2.8 billion, or 55 cents a share, on revenue of $13.8 billion. Wall Street, on the other hand, was expecting earnings of 52 cents a share on revenue of US$13.68 billion.
Intel’s datacenter group delivered second quarter revenue of $3.5 billion, up 19 percent from a year ago. Its IoT division delivered revenue of $539 million, up 24 percent from a year ago.
As for the third-quarter outlook, Intel projected revenue of $14.4 billion, give or take $500 million, with gross margins of 66 percent. Intel also said that 2014 revenue will be 5 percent, up from its previous projection of flat revenue. Gross margin for the year will be about 63 percent.
“Our second-quarter results showed the strength of our strategy to extend the reach of Intel technology from the data center to PCs to the Internet of Things,” said Intel Chief Executive Officer Brian Krzanich, in a written statement.
Q2 Key Business Unit Trends:
- PC Client Group revenue of $8.7 billion, up 9 percent sequentially and up 6 percent year-over-year.
- Data Center Group revenue of $3.5 billion, up 14 percent sequentially and up 19 percent year-over-year.
- Internet of Things Group revenue of $539 million, up 12 percent sequentially and up 24 percent year-over-year.
- Mobile and Communications Group revenue of $51 million, down 67 percent sequentially and down 83 percent year-over-year.
- Software and services operating segments revenue of $548 million, down 1 percent sequentially and up 3 percent year-over-year.
Image Credit: Intel
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