Intel reports Q1 earnings: $12.6 billion revenue, $2 billion net income

Intel just reported a quarterly net income of $2 billion, with $12.6 billion in revenue for a total earnings of 40 cents per share. Net income is down 17 percent compared to Q4 2012, when the company reported $2.5 billion in profit. Revenue is also down by seven percent compared to the previous quarter's $13.5 billion. President and CEO Paul Otellini, who is stepping down in May, references the upcoming 14nm transition, saying that the technology will "will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace." The earnings call is set to happen soon; we'll report back with any additional news -- on the CEO front or otherwise.


SANTA CLARA, Calif., Apr. 16, 2013 – Intel Corporation today reported first-quarter revenue of $12.6 billion, operating income of $2.5 billion, net income of $2.0 billion and EPS of $0.40. The company generated approximately $4.3 billion in cash from operations, paid dividends of $1.1 billion, and used $533 million to repurchase 25 million shares of stock.

Q1 Key Financial Information and Business Unit Trends

PC Client Group revenue of $8.0 billion, down 6.6 percent sequentially and down 6.0 percent year-over-year.
Data Center Group revenue of $2.6 billion, down 6.9 percent sequentially and up 7.5 percent year-over-year.
Other Intel® Architecture Group revenue of $1.0 billion, down 3.9 percent sequentially and down 9.0 percent year-over-year.
Gross margin of 56 percent, down 2 percentage points sequentially and down 8 percentage points year-over-year.
R&D plus MG&A spending of $4.5 billion, in line with the company's expectation of approximately $4.6 billion.
Tax rate of 16 percent.

Q2 2013
Revenue: $12.9 billion, plus or minus $500 million.
Gross margin percentage: 58 percent, plus or minus a couple percentage points.
R&D plus MG&A spending: approximately $4.7 billion.
Amortization of acquisition-related intangibles: approximately $70 million.
Impact of equity investments and interest and other: approximately zero.
Depreciation: approximately $1.7 billion.

Full-Year 2013
Revenue: low single-digit percentage increase, unchanged from prior expectations.
Gross margin percentage: 60 percent, plus or minus a few percentage points, unchanged from prior expectations.
R&D plus MG&A spending: $18.9 billion, plus or minus $200 million, unchanged from prior expectations.
Amortization of acquisition-related intangibles: approximately $300 million, unchanged from prior expectations.
Depreciation: $6.8 billion, plus or minus $100 million, unchanged from prior expectations.
Tax Rate: approximately 27 percent for each of the remaining quarters of the year.
Full-year capital spending: $12.0 billion, plus or minus $500 million, down $1.0 billion from prior expectations.