Boston, MA 10/17/2013 (wallstreetpr) – The New CEO Brian Krzanich announced the third quarter earnings of Intel Corp (NASDAQ:INTC) recently. Revenues were up at $13.5 billion with net income of $3 billion. Earnings per share were $0.58 with $1.1 billion in dividends. $536 million were spent in repurchase of shares, the investors wanted more but they will have to be satisfied with this as of now. An amount of $100 million spent on restructuring and asset impairment charge raised some eyebrows. This amount was spent after the company announced the closure of their Hudson Massachusetts plant. The plant was very old, it had been built in 1994 by Digital Equipment Corp before being taken over in 1997 by Intel. The plant was used to manufacture non-core Intel technologies and would have required additional space and cash to upgrade.
Intel’s PC Client group saw a modest rise of 3.5% sequentially, in line with the decreasing demand for PCs. The trend is now seen globally with PC sales decreasing day by day. The Data Center Group grew at 12% year on year on the back of good performances of Ivy Bridge EP Xeon and Intel Atom Avoton server technologies. Intel is betting big on Bay Trail for consumer space, the synergies will give it economies of scale. The company is also looking at new tablet launches to coincide with the festive shopping season. They have lined up an array of 8-10 SKUs to be launched this season. This will ensure that they take full advantage of the shopping season. The price range could be between $299 to as low as $99 in the new tablets. The company is yet to make its presence felt in the smartphone market as yet. This is one cause of worry.
The stock was trading at $23.69 up by 1.3% at the end of trade on October 16, 2013. With the fiscal default averted at least for some time, the stock may soon reach its 52 week high of $25.98.
