Intel delivered a strong quarter financially, but the firm warned that its next-generation 7-nm chipsets would be delayed yet again.
Intel posted a net income of $5.1 billion (up 10 percent year-over-year) on revenues of $19.7 billion (up 20 percent) for the quarter ending June 30.
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“It was an excellent quarter, well above our expectations on the continued strong demand for computing performance to support cloud-delivered services, a work- and learn-at-home environment, and the build-out of 5G networks,” Intel CEO Bob Swan said in a statement. “In our increasingly digital world, Intel technology is essential to nearly every industry on this planet. We have an incredible opportunity to enrich lives and grow this company with a continued focus on innovation and execution.”
Intel’s PC business is its largest and contributed $9.5 billion in revenues, a gain of 7 percent YOY. But its datacenter business grew an incredible 43 percent to $7.1 billion. “These results were driven by strong sales of cloud, notebook, memory[,] and 5G products in an environment where digital services and computing performance are essential to how we live, work and stay connected,” Intel said.
But it also provided some troubling guidance for the future. While it noted it was “accelerating its transition to 10-nm products this year,” Intel warned that the next-generation 7-nm are being delayed further.
“The company’s 7nm-based CPU product timing is shifting approximately six months relative to prior expectations,” Intel said. “The primary driver is the yield of Intel’s 7nm process, which based on recent data, is now trending approximately twelve months behind the company’s internal target.”