Today Intel announced their earnings for the fourth quarter of their 2019 fiscal year. In terms of revenue, Intel had their highest ever Q4 revenue, coming in at $20.2 billion, and the full 2019 fiscal year, which was $72 billion. On a year-over-year basis, the results were up 8% and 2% respectively. Intel’s margins did slip a bit though, falling 1.4% to 58.8% of revenue. Operating income for the quarter was $6.8 billion, up 9% from last year, and net income was up 33% to $6.9 billion. This resulted in earnings-per-share of $1.58, up 40% from a year ago.

Intel Q4 2019 Financial Results (GAAP)
  Q4'2019 Q3'2019 Q4'2018
Revenue $20.2B $19.2B $18.7B
Operating Income $6.8B $6.4B $6.2B
Net Income $6.9B $6.0B $5.2B
Gross Margin 58.8% 58.9% 60.2%
Client Computing Group Revenue $10.0B +3% +2%
Data Center Group Revenue $7.2B +12% +19%
Internet of Things Revenue $1.16B +16% +16%
Mobileye Revenue $229M +14% +20%
Non-Volatile Memory Solutions Group $1.2B -7.7% +10%
Programmable Solutions Group $505M flat -17%

Intel’s Client Computing Group, or CCG, had revenues of $10.0 billion for the quarter, up 2% from a year ago. Intel attributes the growth to modem sales and desktop platform volume. Intel is of course moving out of the 5G modem business, but will maintain its other connectivity offerings in the CCG such as their Wi-Fi products. Notebook platform volumes were down 1% in this quarter, with average selling prices staying flat, but desktop platform volumes were up 7%, but average selling prices fell 4%. Intel has said that they are expecting their chip shortage to be over by the end of this fiscal year.

Intel’s Data Center Group had revenue of $7.2 billion, up 19% from a year ago. Data Center sold 12% more unit volume this quarter than Q4 2018, and also added in 5% more average selling price per unit, so Intel’s DCG group is still very healthy.

Internet of Things, which include Mobileye, achieved revenue of $1.16 billion, up from $999 million a year ago. IoT was up 13%, accounting for $920 million of that revenue, and Mobileye was up 31% to $240 million.

Non-volatile Storage had revenue of $1.2 billion for the quarter, up 10% from a year ago which Intel is attributing to both NAND and Optane bit growth.

Programable Storage was the one area where Intel had a revenue drop, falling 17% year-over-year to $505 million, with no explanation given, but clearly FPGAs were in shorter demand.

Looking ahead to Q1 2020, Intel is expecting approximately $19.0 billion in revenue for the quarter, with earnings-per-share of $1.23.

Source: Intel Investor Relations

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  • wilsonkf - Monday, January 27, 2020 - link

    1. Intel will also suffer in the long term if fabless is the way to go.
    2. Zen2 are already 15% faster than Coffeelake clock by clock. Intel holds the ground by higher clock.
    Reply
  • StrangerGuy - Thursday, January 23, 2020 - link

    Business IT is mostly driven by political than technical reasons which is why they love buying Intel so much. Nobody on paychecks wants to be that black sheep to be blamed for buying AMD when things goes south for whatever reason. Job security >>>>>>>>>>>>>>>>>>>>>>>> CPU price/performance. Reply
  • liquid_c - Friday, January 24, 2020 - link

    You are unbelievably cancerous and dumb. You still don’t realize that the AMD hype is attributed to a vocal few while the majority are still buying Intel. And yes, as others have stated: Intel is not just a consumer CPU company. But you be you and keep that AMD banner as high as possible. Reply
  • Korguz - Friday, January 24, 2020 - link

    vocal few ?? seems most reviews are adding to that hype to.. not just consumers... Reply
  • yannigr2 - Friday, January 24, 2020 - link

    The DIY market is less that 10% of the whole market. AMD needs to CONVINCE OEMs and corporations to start using it's chips and until now this is NOT happening. Unfortunately, because no one with at least two brain cells alive and no Intel shares in the pockets, wants this. Reply
  • PeachNCream - Friday, January 24, 2020 - link

    I'd say far less than 10%. If you include small time builders like mom and pop computer shops in the DIY market - people that buy parts at or close to retail - it probably doesn't even account for 1% of total CPU sales. When companies like Cisco order 8 million units of product that contains a CPU for networking hardware or when HP sells 400K units of laptops to a single business buyer, the one-off gamers and enthusiasts putting together a PC to save money or enjoy their hobby don't account for more than a little nibble of the total market pie. Reply
  • Samus - Friday, January 24, 2020 - link

    Guess you misread the part where their Datacenter group, the highest growth per high profit group, had a net income around 7x what AMD profited across ALL division (which includes GPU's)

    This, and other markets like IoT, is where AMD has little to no presence. Even if they had a decent datacenter CPU (which they arguably do) it's a long road ahead to deliver what Intel does. It isn't just about performance per watt.
    Reply
  • trivik12 - Friday, January 24, 2020 - link

    they are estimating revenue and EPS increase. Considering Intel is conservative when it comes to long term projections(look at 2019 projections and actuals), 2020 is shaping to be solid year despite AMD having strong server, desktop and in 2020 laptop CPUs.

    Intel is also in markets where AMD has no presence like automotive, 5G edge, FPGA, ASIC etc. So they are not apples to apples company.

    Plus this process issue wont be there for ever. I am willing to bet with 7nm they will be back on track. THey have the resources to fix the issues. Then any advantage that AMD has will go away.

    That said I am not predicting doom for AMD either. Market is big enough to support Intel, Nvidia, AMD and few other chip makers. Specially this decade with 5G, IOT and cloud continuing to grow at a fast rate.
    Reply
  • Korguz - Friday, January 24, 2020 - link

    " I am willing to bet with 7nm they will be back on track. THey have the resources to fix the issues. " oh really ?? like they kept saying 10nm was on track ?? they may have the resources
    . but they still couldnt fix 10nm.. the article AT did on intels process projections.. is useless.. just to try to save face.. until intel actually releases products in volume.. its " believe it.. when it happens..
    Reply
  • CajunArson - Thursday, January 23, 2020 - link

    Just wait until RyZen launches!!

    Oh wait..
    Reply

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