The first quarter of 2022 marks a year since Intel’s reboot Intel Q1 ATMsWiggersVentureBeat, and it feels like things are finally back on track. Its roadmap has a much higher cadence than before, and its products are coming out on time.
Intel is also starting to build up its developer community with new SDKs for Intel Q1 ATMsWiggersVentureBeat and quantum computing, and the company is also reinforcing its commitment to open software ecosystems.
Intel Foundry Services Businesses
It Q1 ATMsWiggersVentureBeat revenue that exceeded guidance by $1.1 billion. It achieved record quarterly revenue in the Network and Edge Group, Mobileye and Intel Foundry Services businesses.
First-quarter results were impacted by factory underload charges that negatively impacted gross margin by 400 basis points. This was partially offset by $350 million to $500 million of operating margin benefit from the useful life accounting change in 2023, which Intel expects will contribute approximately $0.07 to $0.10 to EPS.
New Generation of Xeon Scalable Processors
Intel Q1 ATMsWiggersVentureBeat company also announced a new generation of Xeon Scalable processors and an expanded Intel Developer Cloud to make these platforms available for pre-launch development. Additionally, the company introduced its first Intel(r) ArcTM A-series GPUs for gaming.
Intel also unveiled a redesigned architecture that combines the power of its newest cores with the high-performance memory and persistent memory required for scalable, high-density computing. The architecture offers a breakthrough approach to enabling the next generation of enterprise, data center and mobile computing.
Revenue & Gross Margin
Intel’s Q2 results have been a little bit mixed. They did exceed guidance, but they also incurred a number of costs that affected the company’s revenue and gross margin.
Overall, it seems like the company is back on track. They are releasing new products on time, and they seem to be making a lot of progress in their foundry business.
Some Significant Announcements
In particular, they made some significant announcements at their 2022 Investor Meeting. Some of these include next-generation Intel Xeon and client CPUs that are designed to accelerate data center, AI and other segment workloads. They also introduced a series of software tools to help developers reduce time-to-market, increase performance and security, and build trust with their partners.
In addition, they introduced a joint solution with Red Hat OpenShift Data Science that will combine Intel’s AI portfolio and Red Hat’s open source solutions. They also shared progress on Intel 18A and the engineering release of PDK0.5, and they are working hard to complete the Tower acquisition, which will further amplify their momentum.
Network and Edge Group
Intel logged record quarterly revenue in its Network and Edge Group, Mobileye and Intel Foundry Services businesses. Q3 GAAP earnings per share (EPS) were $1.98, which was better than January guidance.
The company delivered strong demand for its Data Center Group, driven by strong recovery in enterprise and government servers. Also, the Internet of Things (IoT) Group had a record quarter, reflecting increased adoption of Core vPro (11th generation), Lakefield processors and Tiger Lake series offerings.
Number of Organizational
The Company also reported a number of organizational changes designed to accelerate execution and innovation, allowing Intel to capture growth in both large traditional markets and high-growth emerging markets. These changes include a reorganization of the company’s business units to improve visibility, focus and accountability.
Intel reported record quarterly revenue in the Network and Edge Group, Mobileye and Intel Foundry Services businesses. The company also exceeded first-quarter guidance for earnings-per-share and gross margin.
Initial Recovery of Enterprise & Government Sales
The company’s results were driven by continued strong PC demand and initial recovery of enterprise and government sales in the Data Center Group. Revenue in the Data Center Group was up 20% YoY, while Data Center average selling prices rose 4% compared to the prior-year quarter.
During the quarter, the company’s emerging business units achieved strong revenue growth and began shipping key products. This includes the new 200G ASIC IPU for NEX, which began ramping with a hyperscaler and the Intel(r) Xeon(r) D processor that is ramping with a large hyperscaler and OEMs across industries.
The company also announced several initiatives to improve gross margins and reduce costs. These include the Smart Capital Initiative, which is expected to provide a significant lift to gross margins. Additionally, Intel is continuing to implement spending reductions and austerity programs as part of its ongoing strategic transformation.