THIS ARTICLE IS SYNTHESIZED BY THE SEMICONDUCTOR INDUSTRY (ID: ICVIEWS).
The warning is that the recovery is slow, and Intel's second-quarter profit and revenue guidance is weak.
Today, Intel announced its financial results for the first quarter of fiscal year 2024: revenue of $12.7 billion, up 9% year-on-year, net loss attributable to $400 million, down 86% from net loss attributable to $2.8 billion in the same period last year, and adjusted net income attributable to non-GAAP was $800 million, compared with a non-GAAP adjusted net loss of $200 million in the same period last year, turning losses into profits year-on-year.
Intel's fiscal first-quarter revenue and adjusted earnings per share both beat Wall Street analysts' expectations, and its outlook for fiscal second-quarter revenue also beat expectations, but its outlook for fiscal second-quarter adjusted earnings per share missed expectations, causing its shares to fall sharply nearly 8% in after-hours trading.
Major achievements
In the quarter ended March 31, Intel's attributable net loss was $400 million, down 86% from a net loss attributable to $2.8 billion in the year-ago quarter, and its attributable loss per diluted share was $0.09, down 86% from a year-ago quarter loss of $0.66 per diluted share.
Intel's adjusted net income attributable to Intel, excluding certain one-time items (non-GAAP), turned around year-over-year to a non-GAAP adjusted net loss of $0.80 million, compared to a non-GAAP adjusted net loss of $0.04 per diluted share in the year-ago quarter.
Intel's revenue in the fiscal first quarter was $12.7 billion, up 9% from $11.7 billion in the year-ago quarter.
Intel's adjusted earnings per share and revenue in the fiscal first quarter were both better than Wall Street analysts expected. According to data provided by Yahoo Finance, 31 analysts had expected Intel's adjusted earnings per share for the fiscal first quarter on average to reach $0.13, and 31 analysts had expected Intel's fiscal first-quarter revenue to reach $11.94 billion.
Intel's operating loss in the fiscal first quarter was $1.069 billion, narrowing from an operating loss of $1.468 billion in the same period last year. Excluding certain one-time items (non-GAAP), Intel's adjusted operating profit for the fiscal first quarter was $723 million, compared to an adjusted operating loss of $294 million in the year-ago quarter, turning a profit year-over-year.
Intel's operating margin was -8.4% in the fiscal first quarter, up 4.1 percentage points from -12.5% in the year-ago quarter. Excluding certain one-time items (non-GAAP), Intel's adjusted operating margin for the fiscal first quarter was 5.7%, up 8.2 percentage points from -2.5% in the year-ago quarter.
Intel's gross profit in the fiscal first quarter was $5.217 billion, an increase from $4.008 billion in the same period last year. Excluding certain one-time items (non-GAAP), Intel's adjusted gross profit for the fiscal first quarter was $5,739 million, up from $4,494 million in the year-ago quarter.
Intel's gross margin was 41.0% in the fiscal first quarter, up 6.8 percentage points from 34.2% in the year-ago quarter. Excluding certain one-time items (non-GAAP), Intel's adjusted gross margin was 45.1% in the fiscal first quarter, up 6.7 percentage points from 38.4% in the year-ago quarter.
Intel's operating expenses (R&D, general and administrative expenses) were $5.9 billion in the fiscal first quarter, up 10% from $5.4 billion in the year-ago quarter. R&D expenditures were $4,382 million, up from $4,109 million in the same period last year, marketing, general and administrative expenses were $1,556 million, up from $1,303 million in the same period last year, and restructuring expenses and other expenses were $348, up from $64 million in the same period last year. Excluding certain one-time items (non-GAAP), Intel's adjusted operating expenses for the fiscal first quarter were $5.0 billion, up 5% from $4.8 billion in the year-ago quarter.
Intel's tax rate was 39.2% in the fiscal first quarter, up sharply from -139.0% in the year-ago quarter. On a non-GAAP basis, Intel's adjusted tax rate was 13.0% in the fiscal first quarter, unchanged from 13.0% in the year-ago quarter.
Performance of various departments
By segment, Intel Customer Computing Group's first-quarter net revenue was $7,533 million, up 31% from $5,767 million in the year-ago quarter, and operating profit was $2,645 million, up significantly from $1,180 million in the year-ago quarter. Among them, desktop business revenue was $2.461 billion, an increase from $1.879 billion in the same period last year, notebook business revenue was $4.681 billion, an increase from $3.407 billion in the same period last year, and other products revenue was $391 million, down from $481 million in the same period last year.
Intel's Data Center and Artificial Intelligence Group reported first-quarter revenue of $3,036 million, up 5% from $2,901 million in the year-ago quarter, and operating profit of $482 million, up significantly from $22 million in the year-ago quarter.
Intel Network & Edge Group reported first-quarter revenue of $1,364 million, down 8% from $1,489 million in the year-ago quarter, and operating profit of $184 million, a turnaround from an operating loss of $69 million in the year-ago quarter.
Intel's total product revenue in the first quarter (the sum of the revenue of the above three businesses) was $11.933 billion, an increase of 17% compared with $10.157 billion in the same period last year, and the operating profit of total product business was $3.311 billion, a significant increase from $1.133 billion in the same period last year.
Intel Foundry's first-quarter revenue was $4.369 billion, down 10% from $4.831 billion in the year-ago quarter, and its operating loss was $2.474 billion, widening from the $2.360 billion operating loss in the year-ago quarter.
Intel's FPGA (Field Programmable Gate Array) business, Altera, reported first-quarter revenue of $342 million, down 58% from $816 million in the year-ago quarter, and an operating loss of $39 million, compared to an operating profit of $290 million in the year-ago quarter.
Mobileye, Intel's autonomous driving division, reported first-quarter revenue of $239 million, down 48% from $458 million in the year-ago quarter, and an operating loss of $68 million, compared with an operating profit of $123 million in the year-ago quarter.
Intel's Other Business revenue was $194 million, up 17 percent from $166 million in the year-ago quarter, and operating loss was $105 million, widening from an operating loss of $66 million in the year-ago quarter.
Intel's revenue from all other businesses in the fiscal first quarter (i.e., the sum of the revenues of the three businesses) was $775 million, down 46% from $1.440 billion in the year-ago quarter, and the operating loss was $212 million, compared with an operating profit of $347 million in the year-ago quarter.
Outlook
Intel expects revenue in the second quarter of fiscal 2024 to be in the range of $12.5 billion to $13.5 billion, beating analysts' expectations at an average of $13 billion. According to data provided by Yahoo Finance, 31 analysts had expected Intel's revenue in the second quarter of fiscal 2024 to reach $12.68 billion on average.
In terms of earnings outlook, Intel expects a diluted loss per share of $0.05 for the second quarter of fiscal 2024 and non-GAAP adjusted earnings per diluted share of $0.10 for the second quarter of fiscal 2024, which is less than analysts' expectations. According to data provided by Yahoo Finance, 31 analysts had expected Intel's earnings per share of $0.24 in the second quarter of fiscal 2024 on average.
In addition, Intel expects gross margin for the second quarter of fiscal 2024 to be approximately 40.2%, non-GAAP adjusted gross margin of approximately 43.5%, and a tax rate of approximately 61% and non-GAAP adjusted tax rate of approximately 13%.
*Disclaimer: This article was created by the original author. The content of the article is his personal point of view, and our reprint is only for sharing and discussion, and does not mean that we agree or agree, if you have any objections, please contact the background.