Intel Reports 1Q (Fiscal 2Q) 2012 Earnings of $2.7B on $12.9B in Revenue


Intel, [NASDAQ:INTC] today reported their earnings for the first calendar quarter (1Q 2012) which represents Intel’s second fiscal quarter of 2012 (2Q 2012). Intel reported a profit of $2.7 Billion on $12.9 Billion on revenue. This represents a decrease of $1 Billion or 7% from the last quarter and a decrease of profit of $700 Million or 19% from 4Q 2011 (fiscal 1Q 2012).

Compared to the same quarter last year (calendar 1Q 2011, fiscal 2Q 2011), Intel reported basically flat revenue with both quarters coming in at $12.9 Billion in revenue and a decrease in net income of $400 Million or a decrease of 15%. None of this comes as a surprise, as Intel is preparing to launch their Ivy Bridge line of processors in desktops and laptops this quarter. As such, there was somewhat of an expectation that Intel wouldn’t perform as well in a traditionally slow quarter, but it is a bit disappointing that their profit was down $400 Million from the same quarter a year ago.  Intel also reported that their gross margin was down 0.5 points which was partially reflected by the reduced earnings. It is also important to note that the first quarter of 2012 had 13 weeks while the first quarter of 2011 had 14 weeks, which could also impact revenue figures by ~ $100 Million.

Looking at Intel’s earnings for each business segment, their PC Client Group reported revenue of $8.5 Billion, down 7 percent when compared to calendar 4Q 2011. They also reported $2.5 Billion in revenue for their Data Center Group which also represented a decrease of 10% sequentially (compared to calendar 4Q 2011). The Other Intel Architecture Group saw revenues of $1.1 Billion also down 2% from the calendar 4Q 2011.

We will have a full analysis of Intel’s earnings after Intel’s earnings call which begins in a few minutes at 2PM PST.

Currently, after the close, Intel is trading down 2.88% or down $0.83 at $27.64 on this earnings news.