Intel Reports Flat Revenues Despite PC Boom
- Paul Thurrott
- Apr 23, 2021
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30
Intel reported last night that it earned a net income of $3.4 billion on revenues of $19.7 billion with flat year-over-year growth. This, despite 38 percent growth in sales to PC makers.
“Intel delivered strong first-quarter results driven by exceptional demand for our leadership products and outstanding execution by our team,” Intel CEO Pat Gelsinger said. “The response to our new … strategy has been extraordinary, our product roadmap is gaining momentum, and we’re rapidly progressing our plans with re-invigorated focus on innovation and execution. This is a pivotal year for Intel. We are setting our strategic foundation and investing to accelerate our trajectory and capitalize on the explosive growth in semiconductors that power our increasingly digital world.”
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From a financial perspective, Intel didn’t exactly move the needle this past quarter. Revenues were down slightly from the $19.8 billion it earned in the year-ago quarter, hence the use of the word “flat,” and net income was down from the $5.7 billion it reported a year ago.
Intel has two primary businesses, one focused on the PC market and one on datacenters. Intel’s PC business beat expectation by $1 billion in revenues thanks to 38 percent growth YOY, driven of course by strong pandemic-era demand. But its datacenter business saw revenues fall from $6.99 billion last year to $5.56 billion, which could be a red flag for the future.