Intel releases financial report for the third-quarter 2021

Intel released the third quarter of the 2021 financial report yesterday, giving investors the opportunity to have a deeper understanding of how Intel is responding to global supply chain shortages and the impact on its earnings. On the whole, Intel’s earnings report did not meet general expectations.

Intel’s total revenue in the third quarter of 2021 was $18.1 billion, a year-on-year increase of 5%, and earnings per share were $1.71, a year-on-year increase of 59%. Among them, the Data Center Group (DCG), the Internet of Things Group (IOTG), and Mobileye performed relatively well, with revenues of $6.5 billion, $1 billion, and $326 million, respectively, representing year-on-year growth of 10%, 54%, and 39%. In fact, the revenues of the Data Center Group and Mobileye are still lower than expected. Only the Internet of Things Group has exceeded expectations, and its revenue has reached a record high.

Intel Meteor Lake
In addition, the revenues of the Client Computing Group (CCG) and Programmable Solutions Group (PSG) were US$9.7 billion and US$478 million, respectively. CCG fell 2% year-on-year and PSG grew 16% year-on-year, both of which are also lower than expected performance. Among them, the Client Computing Group ​is Intel’s highest revenue share, and more than half of its revenue comes from this. Intel said that the main reason for the decline was the shortage of chip supply, and manufacturers also lacked other parts and components needed for computer assembly. The most direct manifestation was the decrease in notebook sales.

Intel predicts that non-GAAP revenue for the full year of 2021 will be $73.5 billion, a year-on-year increase of 1%, earnings per share were US$5.28, a year-on-year increase of 4%, GAAP is approximately $18 billion-$19 billion. Intel CEO Pat Gelsinger said that it is still in the initial stage of IDM 2.0 strategy implementation, and there are huge opportunities ahead. Strategy formulation, team formation, cultural rebuilding, and execution mechanisms are still the focus of this fiscal year.