Chipmaker reaps rewards from PC sales, but outlook is disappointing
Data centre servers, alongside a stabilised PC market, have helped Intel achieve a record 2014 with a record last quarter, the company reported today.
High demand for cloud computing boosted Intel’s Q4 revenues to grow 25 percent over the same period in 2013. Intel’s PC client group’s Q4 revenues came to $8.9bn, a 3 percent bump from the previous year. The PC business drove revenues of $34.7bn throughout the whole of 2014.
For the last quarter, Intel witnessed a 6 percent increase in revenues year-over-year, reaching $14.7bn. The firm had a net income of $3.7bn – a 39 percent increase. For the whole of 2014, Intel made $55.9bn in revenues and a net income of $11.7bn.
CEO Brian Krzanich said: “Intel is in a very different place today than we were just 12 months ago.
“We are participating in a broader range of devices and we are [growing] in emerging segments. These are the trends we’ll build on in 2015, bringing us closer to our vision: If it’s smart and connected, it does it best with Intel.”
However, Intel’s mobile business suffered heavy operating losses with projections for revenues and profit margins not healthy.
But Intel’s mobile and communications businesses continued to incur heavy operating losses, reflecting subsidies the company paid to get its chips into tablet computers. Its projections for revenue and profit margin in the first quarter also disappointed some analysts.
Intel’s shares dropped two percent in after-hours trading.
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