Sina Technology News Beijing time on October 28 in the early morning news, Intel today announced the company’s financial report for the third quarter of fiscal year 2022. According to the report, Intel’s third-quarter revenue was $15.338 billion, down 20% from $19.192 billion in the same period last year; net profit was $1.019 billion, down 85% from $6.823 billion in the same period last year. Excluding certain one-time items (not in accordance with US GAAP), Intel’s third-quarter adjusted net profit was $2.432 billion, down 59% from $5.908 billion in the same period last year.
Intel’s third-quarter revenue and adjusted earnings per share exceeded Wall Street analysts’ previous expectations, but its outlook for fourth-quarter and full-year results fell short of expectations.
Meanwhile, Intel announced a cost-cutting and efficiency-improvement plan that will cut costs by up to $10 billion between now and 2025. Affected by this, Intel’s shares rose more than 5% after the market.
Main achievement:
In the quarter ended October 1, Intel’s net profit was $1.019 billion, down 85% from $6.823 billion in the same period last year; earnings per share were $0.25, down from $1.67 in the same period last year 85%. Excluding certain one-time items (not in accordance with GAAP), Intel’s third-quarter adjusted net income was $2.432 billion, down 59% from $5.908 billion in the same period last year; adjusted EPS was 0.59 U.S. dollar, down 59% from $1.45 a year earlier.
Intel’s third-quarter revenue was $15.338 billion, down 20% from $19.192 billion in the same period last year. Excluding certain one-time items (not in accordance with US GAAP), Intel’s third-quarter adjusted revenue was also $15.338 billion, down 15% from $18.087 billion in the same period last year.
Intel’s third-quarter revenue and adjusted earnings per share exceeded Wall Street analysts had expected. According to data provided by Yahoo Finance Channel, 30 analysts had expected Intel’s third-quarter adjusted earnings per share to reach $0.32, and 29 analysts had expected Intel’s third-quarter adjusted revenue to reach $15.25 billion.
Intel’s operating loss in the third quarter was $175 million, compared with an operating profit of $5.227 billion in the same period last year; operating profit margin was -1.1%, a decrease of 28.4 percentage points compared with 27.2% in the same period last year. Excluding certain one-time items (not in accordance with U.S. GAAP), Intel’s third-quarter adjusted operating profit was $1.655 billion, compared with $5.744 billion in the same period last year; adjusted operating profit margin was 10.8%, This is a decrease of 21 percentage points compared with 31.8% in the same period last year.
Intel’s third-quarter gross profit was $6.535 billion, compared with $10.746 billion in the same period last year; gross profit margin was 42.6%, down 13.4 percentage points from 56.0% in the same period last year. Excluding certain one-time items (not in accordance with GAAP), Intel’s third-quarter adjusted gross profit was $7.037 billion, compared with $10.544 billion in the same period last year; Compared with 58.3% in the same period last year, it decreased by 12.4 percentage points.
Intel’s operating expenses in the third quarter were $6.710 billion, up 10 percent from $5.519 billion in the same period last year. Among them, research and development expenses were $4.302 billion, compared with $3.803 billion in the same period last year; marketing, general and administrative expenses were $1.744 billion, compared with $1.674 billion in the same period last year; restructuring and other expenses were $664 million , compared with $42 million a year earlier. Excluding certain one-time items (not in accordance with US GAAP), Intel’s third-quarter adjusted operating expenses were $5.382 billion, up 12% from $4.800 billion in the same period last year.
Intel’s third-quarter tax rate was 642.0%, compared with 0.5% a year earlier. Excluding certain one-time items (not in accordance with GAAP), Intel’s adjusted tax rate for the third quarter was -38.7%, compared to -4.2% in the same period last year.
Performance of each department:
According to the division, the net revenue of Intel’s customer computing business (including chip business revenue) in the third quarter was 8.124 billion US dollars, compared with 9.788 billion US dollars in the same period last year, a year-on-year decrease of 17%; operating profit was 1.655 billion US dollars, That compares with $3.592 billion in the same period last year. Among them, the desktop business revenue was $3.222 billion, compared with $3.119 billion in the same period last year; the notebook business revenue was $4.41 billion, compared with $5.944 billion in the same period last year; other business revenue was 492 million U.S. dollars, compared with $725 million a year earlier.
Intel’s data center and AI (artificial intelligence) business revenue in the third quarter was $4.209 billion, compared with $5.778 billion in the same period last year, a decrease of 27% year-on-year; operating profit was $17 million, compared with $5.778 billion in the same period last year $2.293 billion.
Intel’s network and edge computing business reported third-quarter revenue of $2.266 billion, compared with $1.986 billion in the same period last year, an increase of 14% year-on-year; operating profit was $75 million, compared with $511 million in the same period last year.
Intel’s Accelerated Computing Systems and Graphics business unit reported third-quarter revenue of $185 million, compared with $171 million in the same period last year, an increase of 8 percent; operating loss was $378 million, compared with $171 million in the same period last year Operating loss was $222 million.
Mobileye, Intel’s autonomous driving unit, reported third-quarter revenue of $450 million, compared with $326 million in the same period last year, an increase of 38% year-on-year; operating profit was $142 million, compared with operating profit in the same period last year $127 million.
Intel Foundry Services’ third-quarter revenue was $171 million, compared with $174 million in the same period last year, a decrease of 2% year-over-year; operating loss was $103 million, compared with the previous year. Operating loss for the year-ago period was $44 million.
Intel’s third-quarter revenue from all other businesses was $67 million, compared with $1.133 billion in the same period last year; operating loss was $1.583 billion, compared with an operating loss of $1.030 billion in the same period last year.
Performance Outlook:
Fourth quarter earnings outlook:
Intel expects revenue in the fourth quarter of fiscal 2022 to be between $14 billion and $15 billion, and non-GAAP adjusted revenue will also be between $14 billion and $15 billion. One outlook is below analysts’ expectations; loss per share is expected to be about $0.10, and non-GAAP adjusted earnings per share are expected to be about $0.20, also missing analysts’ expectations. According to data provided by Yahoo Finance Channel, 29 analysts on average expected Intel’s fourth-quarter adjusted revenue to reach $16.27 billion, and 30 analysts on average expected Intel’s fourth-quarter adjusted earnings per share to reach $0.66.
Intel also expects gross profit margins in the fourth quarter of fiscal 2022 to be approximately 41.4%, and non-GAAP adjusted gross margins of approximately 45.0%; GAAP tax rates of approximately 40%, non-GAAP The GAAP adjusted tax rate is approximately 14%.
Annual performance outlook:
Intel expects fiscal 2022 revenue to be between $63 billion and $64 billion, and non-GAAP adjusted revenue will also be between $63 billion and $64 billion, failing to meet analysis Analysts expected; earnings per share will reach about $2.00, and adjusted earnings per share not in accordance with US GAAP will reach about $1.95, which also failed to meet analyst expectations. According to data provided by Yahoo Finance Channel, 38 analysts on average expect Intel’s fiscal 2022 adjusted revenue to reach $65.26 billion, and 37 analysts expect Intel’s fiscal 2022 adjusted earnings per share to reach $2.15.
Intel also expects a gross profit margin of approximately 43.1% in fiscal 2022, with a non-GAAP adjusted gross margin of approximately 47.5%; a GAAP tax rate of approximately -5%, not adjusted for GAAP After tax rate of approximately 2%; capital expenditures of approximately $25 billion and non-GAAP adjusted capital expenditures of approximately $21 billion; adjusted free cash flow of approximately -$2 billion to -$4 billion.
Share price changes:
On the same day, Intel’s shares fell $0.94 in regular Nasdaq trading to close at $26.27, or 3.45%. Intel shares rose sharply by $1.38, or 5.25%, to $27.65 in after-hours trading as of 5:23 p.m. ET Thursday (5:23 a.m. Beijing time on Friday). In the past 52 weeks, Intel’s highest price was $56.28 and its lowest price was $24.59. (Tang Feng)