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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  • Krayzieka - Friday, January 24, 2020 - link

    get real AMD haven't successfully convinced OEMS to use more AMD chips why is Intel still greater than 90%. OEMS & Intel definitely want to milk the customers. Market wont change Reply
  • PeachNCream - Friday, January 24, 2020 - link

    Assuming OEMs can charge the same for a computer with a similarly performing AMD chip that costs less to purchase, then the OEM can actually drive per unit margins upward by switching CPU vendors if everything else remains otherwise equal. The wrinkle is that everything else doesnt remain otherwise equal and there are things that change with CPU origin. Power consumption, consumer perception, motherboard and cooling design, iGPU performance, and so forth all move the bar around. And there is nothing but Intel's own margins to consider if they determine they can raise or lower prices based on the competitive landscape in order to land a deal with a particular OEM.

    While I would like to see a more competitive industry because competition favors consumers, it isnt just a matter of having a good product at the right price these days. There is other secret sauce in the recipe.
    Reply
  • dwade123 - Friday, January 24, 2020 - link

    Just goes to show the AMD circle jerk is nothing more than a vocal minority. Also, tech writers who have AMD stocks shouldn't be allowed to write about tech. They usually try to spin AMD in a good light while smearing against Intel and Nvidia in hopes their BS articles can boost AMD stock prices. Pathetic. Reply
  • Korguz - Friday, January 24, 2020 - link

    oh.. like the various intel bias posters do in the amd articles on here ??
    " Also, tech writers who have AMD stocks shouldn't be allowed to write about tech. " theb the ones who have stock intel should do the same...
    Reply
  • scineram - Saturday, January 25, 2020 - link

    AMD should have gone bankrupt and let the world appretiate a simple reliable supplier. Reply
  • Korguz - Monday, January 27, 2020 - link

    " let the world appretiate a simple reliable supplier " that would be left to do what ever and charge what ever it wants ?? yea right...are you crazy ???? Reply
  • zodiacfml - Monday, January 27, 2020 - link

    Well, that exceeded my expectations. I predicted Intel is going to be fine once AMD 7nm CPUs comes out. Sad though Reply

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