lswcap
Intel announced the settlement for the first quarter of 2021. This financial report is the first time since the inauguration of Pat Gelsinger’s inauguration. However, Gelsinger, which launched the foundry expansion business, is expected to improve in the second quarter of 2021.
According to this, first quarter sales were $19.7 billion, net income was $3.4 billion, and earnings per share were $0.82. According to Intel, operating profit, net income, tax rate, and earnings per share declined year-on-year. This is because the cost of the jury trial over the patent litigation for VLSI, an integrated circuit design company, is reflected. It is also said that Intel will strongly oppose and appeal the ruling that requires payment of damages amounting to KRW 2 trillion.
Cloudwood service provider sales fell 29% year-on-year. As for the reason, Intel explains that it is because a customer has put an order on hold for inventory clearance. However, reports have pointed out that due to the delay in launching new products, investors are concerned about the possibility that important customers will switch to other products.
Data center revenue was $5.6 billion, down 20% year-on-year, lower than Wall Street expectations. It is analyzed that the sluggish data center division, which is highly profitable due to Intel’s main business, has also led to a deterioration in profitability.
However, the PC segment was up 8% year-on-year to $10.6 billion, slightly exceeding analyst estimates of $10 billion. It is interpreted that this is because the demand for laptops in the remote work environment is increasing as the corona 19 epidemic is prolonged. In addition, CEO Gelsinger said that there are no signs of slowing PC demand. In 2021, the increase in costs due to the shortage of semiconductor supply is inevitable, and he will take an active stance to secure market share.
Intel is forecasting revenue of $18.9 billion in its second quarter earnings forecast, and total sales of $77 billion in 2021. According to reports, Intel’s outlook is a bit exceeding analyst expectations. Gelsinger’s CEO said in a statement that 2021 will be an important year for Intel. In addition, in March 2021, CEO Gelsinger announced that it would invest $20 billion in a new microchip manufacturing plant, and announced IDM 2.0 plans to use it as a foundry to manufacture chips from other companies as well as its own chips.
In addition, Intel announced its flagship 11th-generation core processor, Rocket Lake-S, in March 2021, and in April 2021, the third-generation Xeon Scalable Processors, a data center CPU. Is announcing. In addition, Intel is appealing various efforts in the first quarter of 2021 in the financial report, such as a partnership with Google Cloud in 5G networks and joint development for autonomous driving, according to Intel’s autonomous driving technology development companies MobilI and Intel. Related information can be found here.
Add comment