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Data centre, flash buoy Intel revenue in Q3

Posted: 15 Oct 2015 ?? ?Print Version ?Bookmark and Share

Keywords:Intel? data centre? server? flash? IoT?

Intel has announced Q3 revenue of $14.5 billion, a 10 per cent increase from 2Q15, and flat YoY growth. Net profits were $3.1 billion up 15 per cent from the last quarter but down six per cent from the same quarter last year. Growth in its data centre, non-volatile memory and Internet of Things (IoT) businesses offset lower client revenue, added the company.

"We executed well in Q3 and delivered solid results in a challenging economic environment," CEO Brian Krzanich stated. Krzanich said the company's sixth generation Core processor and 3D XPoint technology drove customer interest.

Separately, Intel cut its capex budget by $400 million to $7.3 billion, the fourth cut in 2015. CFO Stacy Smith expects capex to rise following this quarter's significant decrease.

Smith said the capex cut happened because the company "upgraded the configuration on a specific piece of equipment that we were going to buy" and moved the delivery slot to the beginning of 2016.

Looking ahead, Intel expects revenue for 4Q15 to increase two per cent to $14.8 billion. It expects the weaker PC business will be offset by memory, IoT and data centre segments, continuing this quarter's trend.

Krzanich also forecast incremental growth in foundry.

Intel revenue

Source: Intel

"I do see it still as a growth business. It will not be one of those ones that will largely move the needle in next couple of years, but I see continued growth and acquisition of customers in that space," he said.

Forty per cent of Intel's Q3 revenue came from its data centre and memory businesses, with memory growing by 20 per cent YoY to "generate significant cash." Data Centre Group revenue was $4.1 billion, up eight per cent QoQ and up 12 per cent from 2014.

"The non-volatile memory business has been very good to us and has grown at a better rate than anticipated," Krzanich said, noting that more than 80 per cent of Intel's enterprise SSDs go into data centres. "We think of our NAND business as tied very closely to our data centre business.

The company hopes its latest class of non-volatile memory, 3D Xpoint, will continue to drive its memory group with additional applications beyond the data centre including mobile and IoT. Smith pointed to FPGAs and silicon photonics as products set to increase Intel's footprint in the data centre.

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