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Intel reports 4% revenue drop in fiscal Q3

By IANS | Updated: October 23, 2020 13:00 IST

San Francisco, Oct 23 Intel's fiscal third-quarter revenue reached $18.3 billion, down 4 per cent year-over-year as its ...

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San Francisco, Oct 23 Intel's fiscal third-quarter revenue reached $18.3 billion, down 4 per cent year-over-year as its data-centric revenue declined 10 per cent while PC-centric revenue was better than expected, up one per cent YoY, the company said.

However, despite the challenging times, Intel's earnings reported on Thursday were better than analysts had expected.

Its shares dropped just about 10 per cent in extended trading on Thursday, CNBC reported.

"Our teams delivered solid third-quarter results that exceeded our expectations despite pandemic-related impacts in significant portions of the business," Intel CEO Bob Swan said in a statement.

Intel said it is expecting five per cent top-line growth year-over-year in 2020 with full-year revenue of $75.3 billion.

"Nine months into 2020, we're forecasting growth and another record year, even as we manage through massive demand shifts and economic uncertainty," the Intel CEO said.

"We remain confident in our strategy and the long-term value we'll create as we deliver leadership products and aim to win share in a diversified market fueled by data and the rise of AI, 5G networks and edge computing."

In the third quarter, the company generated $8.2 billion in cash from operations and paid dividends of $1.4 billion.

Third-quarter revenue was ahead of prior expectations driven by continued strength in notebook sales, which helped offset Covid-driven headwinds affecting significant portions of its business.

In the Data Centre Group (DCG), Cloud revenue grew 15 per cent YoY on continued demand to support vital services in a work and learn-at-home environment.

At the same time, a weaker economy due to Covid-19 impacted DCG's Enterprise & Government market segment, which was down 47 per cent YoY following two quarters of more than 30 per cent growth.

The pandemic also weighed on third-quarter data-centric results in the Internet of Things Group and the memory business (NSG).

The PC-centric business (CCG) was up one percent YoY in the third quarter on continued notebook strength to support the work- and learn-at-home dynamics of Covid-19.

Intel on Tuesday said it has signed an agreement to sell its NAND memory and storage business to South Korean chipmaker SK hynix for $9 billion.

( With inputs from IANS )

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Tags: IntelCnbcBob Swan
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