NEW YORK, July 24, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Intel Corporation (NASDAQ: INTC). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=INTC
Highlights from our INTC Report include:
- Revenue reflects consistency with outlook - On July 15, 2015, Intel Corporation released results for the second quarter of 2015. The Company generated revenue of $13.2 billion, reflecting a decrease of 5% from $13.8 billion in Q2 2014. As per the release, Intel's revenue during the quarter is in line with the Company's expectation. During Q2 2015, gross profit was recorded at $8.2 billion, lower from $8.9 billion in previous year quarter. Gross margin of 62.5% was up 0.5 point from the Company's outlook. Further, Net income for the period stood at $2.7 billion, lower than $2.8 billion in last year quarter. Consequently, diluted earnings per share of the Company amounte d to $0.55, at par with the prior year quarter level.
- Segment Performance - The Company's client computing group generated revenues of $7.5 billion, as compared to $8.7 billion in Q2 2014. The segment's platform unit volume declined 10% YoY and platform average selling prices down 3% YoY. However, Data centre group of the Company generated $3.9 billion revenue, reflecting an increase of 10% YoY. The segments' platform volumes was up 5% and platform average selling prices was up 5% on YoY basis. In addition, the internet of things group revenue stood at $0.6 billion, higher than $0.5 billion in Q2 2014. Further, the Company's software and services operating segments revenue was recorded at $0.5 billion, down by 3% YoY.
- Management Opinion - "Second-quarter results demonstrate the transformation of our business as growth in data center, memory and IoT accounted for more than 70 percent of our operating profit and helped offset a challenging PC market," said Intel CEO Brian Krzanich. "We continue to be confident in our growth strategy and are focused on innovation and execution. We expect the launches of Skylake, Microsoft's Windows* 10 and new OEM systems will bring excitement to client computing in the second half of 2015."
- Outlook for Q3 2015 and Full-Year 2015 - The Company expects to generate a revenue of around $14.3 billion (+/- $500 million) in the third quarter of 2015. Gross margin is anticipated to be approximately 63%. In addition, for the full year 2015, the Company expects revenue to be down by 1% YoY. Gross margin is projected to be around 61.5%. R&D plus MG&A spending is anticipated to be approximately $19.8 billion (+/- $400 million) and amortization of acquisition-related intangibles to be around $265 million. The forecasted full year capital spending is $7.7 billion (+/- $500 million).
To find out how this influences our rating on Intel Corporation read the full report in its entirety here: http://www.aciassociation.com/?c=INTC
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