Microprocessor giant Intel reported today that it earned a net income of $21 billion on a record $72 billion in revenues in 2019.
“In 2019, we gained share in an expanded addressable market that demands more performance to process, move and store data,” Intel CEO Bob Swan said in a prepared statement. “One year into our long-term financial plan, we have outperformed our revenue and EPS expectations. Looking ahead, we are investing to win the technology inflections of the future, play a bigger role in the success of our customers and increase shareholder returns.”
The fourth quarter of 2019 was key to Intel’s success last year: It reported record revenues of $20 billion that one quarter alone, a gain of 8 percent year-over-year.
The general stagnation in the PC industry certainly didn’t help much: While $37.1 billion of Intel’s annual revenues came from its Client Computing Group (CCG), those revenues were “flat,” Intel said. But “in the fourth quarter, the PC-centric business (CCG) was up 2 percent on higher modem sales and desktop platform volumes.” Intel’s PC business generated $8.6 billion in revenues in the fourth quarter.
Worse, Intel said that revenues from its PC business would be down in the low single digits in 2020. Overall, Intel says that it expects revenues of about $73.5 billion this year, a gain of 2 percent YOY and in keeping with this past year’s growth.