Intel talks up tablets as PC profit slides

Intel outlined its plans to drive tablet growth this year, setting out an ambitious strategy to increase the company’s market share.

Releasing its first-quarter financials today, the tech giant reported revenue of US$12.8 billion, operating income of $2.5 billion, net income of $1.9 billion and EPS of 38 cents.

The company generated approximately $3.5 billion in cash from operations, paid dividends of $1.1 billion, and used $545 million to repurchase 22 million shares of stock.

“In the first quarter we saw solid growth in the data center, signs of improvement in the PC business, and we shipped 5 million tablet processors, making strong progress on our goal of 40 million tablets for 2014,” says Brian Krzanich, CEO, Intel.

“Additionally, we demonstrated our further commitment to grow in the enterprise with a strategic technology and business collaboration with Cloudera, we introduced our second-generation LTE platform with CAT6 and other advanced features, and we shipped our first Quark products for the Internet of Things.”

Q1 Key Business Unit Trends

• PC Client Group revenue of $7.9 billion, down 8 percent sequentially and down 1 percent year-over-year.

• Data Center Group revenue of $3.1 billion, down 5 percent sequentially and up 11 percent year-over-year.

• Internet of Things Group revenue of $482 million, down 10 percent sequentially and up 32 percent year-over-year.

• Mobile and Communications Group revenue of $156 million, down 52 percent sequentially and down 61 percent year-over-year.

• Software and services operating segments revenue of $553 million, down 6 percent sequentially and up 6 percent year-over-year.