Intel Corp. reported its fourth quarter and full-year revenues Thursday (Jan. 15) reaching a record high for the microprocessor giant on the back of strong performances in PCs, tablets and the Internet of Things (IoT).
In the fourth quarter, Intel had revenues of $14.7 billion, operating income of $4.5 billion and net income of $3.7 billion. For the year, Intel generated $55.9 billion in revenues, a record, with operating income of $15.3 billion and net income of $11.7 billion.
Brian Krzanich, CEO of Intel, said during the earning conference call that one of Intel’s goals for the year was to stabilize the PC business even if it expected a decline in revenue from 2014. Instead, the year closed with a 4 percent increase in revenue for PCs and a 25 percent increase in operating profit, Krzanich said.
Moving forward, Intel said with the release of the Broadwell architecture, manufactured on 14 nanometer (nm) process technology, and the subsequent family of Core M and fifth generation core processors will be the foundation for future growth in the PC sector. Designs for the fifth generation core processors include those in the notebook, 2-in-1, Ultrabook, Chromebook and desktop PC segments.
On the tablet side, Intel had a goal to ship 40 million tablets in 2014 in order to establish Intel in the tablet space and create a brand, Krzanich said. “I’m pleased to report that we shipped 46 million tablets, becoming one of the industry’s largest merchant silicon providers in tablets,” he said.
In the IoT group, Intel grew 19 percent through 2014, passing the $2 billion market for the first time and extended its intellectual property business with the launch of its RealSense 3D camera technologies.
Krzanich said that Intel has moved quickly into wearables and is growing its portfolio with collaborations with Fossil, Oakley, Opening Ceremony and SMS Audio. And with the launch of the Intel products Basis Peak and Curie Module, “Intel is in a very different place today that we were just 12 months ago,” Krzanich said.
Looking ahead to the first quarter of this year, Intel’s CFO Stacy Smith said in the conference call Intel expects revenue to come in at a range of $13.7 billion, plus or minus $500 million, which will be down about 7 percent from the fourth quarter. For the full-year of 2015, Smith said the MPU giant is planning on revenue growth in the mid-single digit percentage, with a gross margin range at 62 percent.
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