Intel released the financial report for Second-Quarter 2021: Revenue exceeded expectations

by ddos ·

Intel released its second-quarter 2021 financial report yesterday. For ten consecutive quarters, revenue exceeded expectations. Its sales of personal computers, including desktops and notebooks, increased by 33% year on year. However, the performance of the server market is still weak, and the increasing supply chain costs are eroding its profits, causing Intel to lower its gross margin expectations.

Intel’s financial report shows that the second-quarter revenue was $19.6 billion, up 2% year-on-year, higher than the expected $17.8 billion; net profit was US$5.2 billion, up 6% year-on-year, earnings per share were US$1.28, an increase of 12% year-on-year, exceeding consensus expectations by more than 19%. Intel said that it has provided 50 million Tiger Lake chips to the market and will ship millions of Alder Lake chips to partners in the second half of this year. Although the shortage of desktop computer chips will be more serious in the third quarter, Intel will still increase its full-year revenue forecast by US$1 billion to $73.5 billion.



Although there was 15% and 40% sales growth in desktops and laptops, the revenue was at the expense of price reductions. The average selling prices of the two dropped by 5% and 17%, respectively. This shows that Intel is taking lower measures to grab market share with AMD. In addition to personal computers, the highlight in the financial report is still the autonomous driving system company Mobileye, with quarterly revenue of $327 million, a substantial increase of 128% year-on-year. Intel hopes that Mobileye can become a mainstream brand of autonomous driving systems. It has already begun road testing in New York City and is the only company in New York that holds an autonomous vehicle test license. The data center department performed poorly, with revenue of $6.5 billion, a year-on-year decrease of 9%. Intel said it would face a more intense competitive environment.

Previously, Intel invested 3.5 billion US dollars to upgrade the wafer fab in New Mexico and will be equipped with advanced semiconductor packaging technology, including Foveros packaging technology. In addition, Intel said that the current 10nm process is used to manufacture more wafers than 14nm, while the cost has dropped 45% year on year. However, the market reacted negatively to Intel’s earnings report, and the stock price fell after the announcement.

Tags: Intel