Intel reports flat earnings in Q1 as data-centric revenue declines

Source: Xinhua| 2019-04-26 14:19:54|Editor: Xiaoxia
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SAN FRANCISCO, April 25 (Xinhua) -- U.S. chipmaker Intel Corporation said Thursday its first-quarter revenue remained flat at 16.1 billion U.S. dollars in 2019 compared to the revenue of 16.07 billion dollars in the same period of last year.

The company said its net income under the generally accepted accounting principles (GAAP) for the quarter was 4 billion dollars, down by 11 percent from the figure of 4.5 billion dollars in the same period of a year ago.

While the data-centric revenue fell by 5 percent in the quarter year-on-year, earnings from PC sales increased by 4 percent in the period due to a strong mix of the company's higher performance products and strength in gaming, large commercial and modem, Intel said in its First-Quarter 2019 Financial Results Report.

Intel's operating income fell 7 percent from 4.5 billion dollars in the first quarter of 2018 to 4.2 billion dollars for the same quarter of this year.

Intel's memory business slid 2 percent year on year due to pricing pressure and market weakness.

"The decline in memory pricing has intensified, the data-center inventory and capacity digestion that we described in January is more pronounced than we expected, and China headwinds have increased, leading to a more cautious IT spending environment," Intel CEO Bob Swan told an earnings conference call on Thursday.

He said he believed "demand will improve in the second half."

The company's earnings per share for the first quarter of 2019 went up slightly by 2 percent, from 0.87 dollar in Q1 2018 to 0.89 dollar in the corresponding period of this year.

Intel cuts its full-year revenue forecast for 2019 to 69 billion dollars from the 71.5 billion dollars released in its earnings report in January this year.