One Quarter Down, So Much More On The Horizon
Intel Thursday reported its first fiscal quarter 2022 financials, with revenue of $18.4 billion down 7 percent compared to last year, but with GAAP net income up 141 percent compared to a 35-percent drop in non-GAAP net income. That drop in revenue was caused primarily by a 13-percent slowdown in Intel’s client computing business, which accounts for slightly over 50 percent of total revenue, while all the other parts of the business grew well.
While investors saw the numbers as a reason to push Intel’s share prices down by nearly 7 percent on Friday, Intel CEO Pat Gelsinger saw the numbers as vindication of Intel’s strategy to take market share and build for the future, including its upcoming massive investment in foundry services.
Santa Clara, Calif.-based Intel has a long-term growth strategy to unlock a trillion-dollar market opportunity around four key pillars, Gelsinger told financial analysts on the conference call.
“We will deliver leadership products anchored on open and secure platforms powered by at-scale manufacturing and supercharged by our people,” he said. “In Q1, we made great progress on all of these areas, and we are continuing to hold our full-year revenue outlook.”
Intel has been busy introducing new processors, GPUs, and other semiconductors and related software, all with an eye towards the future, including a future where half the world’s semiconductor manufacturing will be in North America and Europe as a way to prevent shortages in the world, Gelsinger said.
“Overall, Q1 was a great start to the year as we continue to execute on a path to our long-term growth story,” he said. We still have a lot of work to do, but we are executing at a torrid pace, and I remain confident in our path forward.”
Gelsinger also said the first fiscal quarter 2022 is the first for Intel to report based on its June 2022 move to reorganize its business into six new business groups, including CCG (Intel Client Group), DCAI (Intel Datacenter And AI Group), NEX (Intel Network And Edge Group), AXG (Intel Accelerated Computing Systems And Graphics Group), IFS (Intel Foundry Services), and MBLY (Intel Mobileye).
For a look at how Intel is executing against its plans, click through the slideshow.