Intel reported stronger-than-expected first-quarter results Tuesday, beating Wall Street estimates by a penny, crediting chips used in data centers among other business unit boosts for the gains. Intel's net income totaled $1.95 billion for the quarter, or 38 cents a share, down 5 percent from a year ago. Analysts had expected 37 cents a share.
Revenue winners for Intel also included the Internet of Things market accounting for $482 million, which the company said was up 32 percent year over year.
Intel's PC Client Group, meanwhile, recorded revenue of $7.9 billion, which was a smaller-than-expected drop of 1 percent. In contrast, Intel’s Data Center Group, responsible for selling microprocessors used in servers, saw sales up 11 percent from the year prior with $3.1 billion in reported revenue.
Intel’s mobile story was a bit more complicated, with the Santa Clara, Calif.-based company reporting a $929 million operating loss, with sales falling 61 percent to $156 million from $404 million a year earlier. But CEO Brian Krzanich said the losses in the mobile business were expected as the chip maker is trying to crack the mobile market.
Krzanich said Intel was prepared to turn up the heat on its battle with Qualcomm with LTE-capable chips expected to launch later this year.
In tablets, Krzanich said in a statement that Intel’s processors would be in 40 million units this year. Intel said it shipped 5 million tablet processors in the first quarter.
PUBLISHED APRIL 15, 2014