Intel announced its third quarter results from July to September 2020 on October 22 (local time). As the COVID-19 pandemic around the world, notebook semiconductors showed strong performance, while the data center division was sluggish.
According to Intel’s third-quarter settlement, sales in 2020 were $18.3 billion, down 4% year-on-year based on GAAP. Gross profit decreased by 5.7% to 53.1%, R&D and marketing decreased by 1% to $4.7 billion, operating profit decreased by 22% to $5.1 billion, tax rate increased by 4.3% to 15.2%, net profit decreased by 29% to $4.3 billion, per share Net profit was down 25% to $1.22 billion.
Intel is also referring to the sluggish data center. Cloud revenue grew by 15% compared to the same period of the previous year due to the spread of Corona 19, but from a 30% rapid growth compared to the same period of the previous year, which was seen in the second quarter of 2020, due to decreased corporate and government spending, the third quarter turned to a decrease of 47% compared to the same period of the previous year, and the total data center business sales Was $5.91 billion, down 7% from the same period last year.
| GAAP | Non-GAAP | ||||||
| Q3 2020 | Q3 2019 | vs. Q3 2019 | Q3 2020 | Q3 2019 | vs. Q3 2019 | ||
| Revenue ($B) | $18.3 | $19.2 | down 4% | $18.3^ | $19.2^ | down 4% | |
| Gross Margin | 53.1% | 58.9% | down 5.7 ppt | 54.8% | 60.4% | down 5.5 ppt | |
| R&D and MG&A ($B) | $4.7 | $4.7 | down 1% | $4.7 | $4.7 | down 1% | |
| Operating Income ($B) | $5.1 | $6.4 | down 22% | $5.4 | $6.9 | down 22% | |
| Tax Rate | 15.2% | 10.8% | up 4.3 ppt | 15.3% | 10.8% | up 4.5 ppt | |
| Net Income ($B) | $4.3 | $6.0 | down 29% | $4.7 | $6.3 | down 26% | |
| Earnings Per Share | $1.02 | $1.35 | down 25% | $1.11 | $1.42 | down 22% |
PC-related business sales reached 98.5 billion dollars, a 1% increase from the same period last year due to the special effects of home study and home work caused by Corona 19. In the third quarter, after the announcement of Tiger Lake, the 11th generation core processor for notebooks, the report emphasizes that more than 100 notebooks with Tiger Lake will appear within 2020.
Regarding the settlement, Intel CEO Bob Swan said that despite the impact of Corona 19 in most of the business, it was able to deliver results that exceeded expectations, and that although there are large demand changes and economic uncertainty, it is predicting growth. In addition, the delay in 7nm process development that occurred in July will be explained in detail in January 2021, but also mentioned the possibility of entrusting production to TSMC. Related information can be found here .