Intel PC, Server Sales Drive Strong Q3

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Strong PC and server sales for Intel offset an operational loss in mobile device component sales and combined to give the company overall strong results for its fiscal third quarter.

A boom in the company's third fiscal quarter legacy PC and server markets gave Intel its best-ever quarterly revenue and a strong profit, the company reported Tuesday after market close.

For the company's third quarter ended Sept. 27, Intel reported revenue of $14.6 billion, up 8 percent from a year earlier.

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Income for the quarter reached $3.3 billion, or 66 cents per share, compared to last year's $3 billion, or 58 cents per share.

Shares of Intel were trading up 2 percent in extended trading Tuesday to a recent market value of $159.13 billion.

The quarterly results came on the back of what Intel called record quarterly unit shipments of processors for PCs, servers, tablets, phones and devices for the Internet of Things, which combined gave Intel the first quarter in which its shipments exceeded 100 million microprocessors.

Third-quarter revenue for Intel's PC Client Group rose 9 percent year-over-year to reach $9.2 billion, while the company's Data Center Group revenue rose 16 percent over last year to reach $3.7 billion.

Revenue for Intel's Internet of Things Group reached $530 million, up 14 percent over last year, while the Mobile and Communications Group revenue of $1 million was consistent with expectations, the company said.

In terms of volume, Intel's PC Client Group microprocessor shipments rose 15 percent over last year while average selling price fell 5 percent. The company's Data Center Group shipments rose 6 percent while average selling price rose 9 percent. Notebook platform shipment volume rose 21 percent while average selling price fell 10 percent from a year ago. Desktop platform shipment volume rose 6 percent while average selling price rose 2 percent from the year-ago period.

The one business that lagged during the quarter was the company's Mobile and Communications Group, which posted an operational loss of $1.04 billion.

NEXT: Strength In PC Business

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