The slumping PC market struck Intel again, but not as hard as expected.
Intel reported first-quarter revenue of $12.6 billion and earnings of 40 cents per share, which were slightly less than analysts had expected.
Intel's PC Client Group saw revenue fall 6 percent year-over-year to $8 billion for the quarter. While a 6 percent decline isn't insignificant, it's a far cry from the gloom IDC reported earlier this month for the PC industry. The market research firm reported worldwide PC shipments fell 13.9 percent in the first quarter, which is the steepest quarterly decline IDC has ever reported.
Meanwhile, Intel's Data Center Group continued its upward trajectory with a 7.5 percent increase year-over-year for $2.6 billion.
"Amidst market softness, Intel performed well in the first quarter and I'm excited about what lies ahead for the company," Intel President and CEO Paul Otellini said in a press statement. "We shipped our next generation PC microprocessors, introduced a new family of products for micro-servers and will ship our new tablet and smartphone microprocessors this quarter. We are working with our customers to introduce innovative new products across multiple operating systems. The transition to 14nm technology this year will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace."
Intel's stock price rose approximately 2.5 percent in after-hours trading. Intel CFO Stacy Smith said Intel's forthcoming Haswell chips, as well as improving economic factors and growth in slimmer form factors like tablets and Ultrabooks, will lead to a rebound in the second half of the year.
For the second quarter, Intel expects revenue of approximately $12.9 billion, plus or minus $500 million. For the full year, Intel said it expects low single-digit increases in revenue.
As for Otellini, who is retiring next month, Intel said the CEO selection process is "on track" and that the company expects to name a successor by the time Otellini officially steps down.
PUBLISHED APRIL 16, 2013