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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  • alufan - Friday, January 24, 2020 - link

    see am the opposite the only cpu i ever had fail was an intel 4 core which just died no reason it just stopped posting alternate cpu in the mobo posted fine, never built an intel since but have bought prebuilt out of necessity, all my self builds are AMD and never had one CPU fail had a GPU changed under warranty though due to a bad power plug Reply
  • yannigr2 - Friday, January 24, 2020 - link

    "their chip shortage to be over by the end of this fiscal year"

    In real calendar when is this?
    Reply
  • wrkingclass_hero - Friday, January 24, 2020 - link

    Maybe I'm crazy, but now seems like the perfect time to sell. Reply
  • Carmen00 - Friday, January 24, 2020 - link

    I genuinely hate articles like this, while seeing their necessity and appreciating them for what they are. No matter WHAT the article says, it brings all the worms out of the woodwork.

    For anyone who reads this: Intel had a good year, financially. Good for them. Happy 2020, and reddit is the place for your AMD-vs-Intel opinions. If you have a financial analysis or company analysis to contribute (this is, after all, an article about finances), please do comment. If you would like to comment on what you thought Intel's performance would be, and whether you were correct or not and why, your comment is also welcome.

    This is not an AMD article. This is an Intel article. Thank you.
    Reply
  • Korguz - Friday, January 24, 2020 - link

    but its ok to comment about intel, in amd articles.. i see how it works :-) Reply
  • T1beriu - Friday, January 24, 2020 - link

    If you look deep in Intel's financials you'll see that it lost -6% in desktops, -5% in notebooks and -3% in servers in volume vs 2018. Reply
  • HStewart - Friday, January 24, 2020 - link

    Where do you see that information, also remember that PC industry is also down Reply
  • HStewart - Friday, January 24, 2020 - link

    "Notebook platform volumes were down 1% in this quarter, with average selling prices staying flat, but desktop platform volumes were up 7%"

    This is what is stated in article and my guess waiting on 10nm hurt above - but I felt it was odd that desktop went up - maybe AMD help Intel in that area
    Reply
  • HStewart - Friday, January 24, 2020 - link

    But since 2018 - total client group was up 2% - it was programmable logic group that took a hit. Reply
  • Korguz - Friday, January 24, 2020 - link

    maybe he looked at the actual finaancials not this article ?? come one hstewart.... Reply

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