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Intel Tops Forecasts

April 23, 2021

Intel had earnings per share (EPS) of $1.39 with only $1.15 expected. On their top line, revenue was $18.57 billion with $17.90 billion expected.

“Intel delivered strong first-quarter results driven by exceptional demand for our leadership products and outstanding execution by our team. The response to our new IDM 2.0 strategy has been extraordinary, our product roadmap is gaining momentum, and we’re rapidly progressing our plans with re-invigorated focus on innovation and execution,” said Pat Gelsinger, Intel CEO. “This is a pivotal year for Intel. We are setting our strategic foundation and investing to accelerate our trajectory and capitalize on the explosive growth in semiconductors that power our increasingly digital world.”

Q1 2021 Financial Highlights

First-quarter 2021 GAAP operating margin, net income, tax rate, and EPS results reflect the impact of a charge related to VLSI litigation. Intel strongly disagrees with the jury’s verdict in March and intends to appeal.

 

GAAP

 

Non-GAAP

 

Q1 2021

Q1 2020

vs. Q1 2020

 

Q1 2021

Q1 2020

vs. Q1 2020

Revenue ($B)

$19.7

$19.8

down 1%

 

$18.6

$18.6

flat

Gross Margin

55.2%

60.6%

down 5.4 ppt

 

58.4%

64.5%

down 6.1 ppt

R&D and MG&A ($B)

$5.0

$4.8

up 3%

 

$4.8

$4.6

up 2%

Operating Margin

18.8%

35.5%

down 16.7 ppt

 

32.8%

39.5%

down 6.7 ppt

Tax Rate

14.0%

14.4%

down 0.5 ppt

 

13.7%

13.7%

flat

Net Income ($B)

$3.4

$5.7

down 41%

 

$5.7

$6.1

down 6%

Earnings Per Share

$0.82

$1.31

down 37%

 

$1.39

$1.41

down 1%

In the first quarter, the company generated $5.5 billion in cash from operations, paid dividends of $1.4 billion, and used $2.3 billion to repurchase stock.

Business Unit Summary

Key Business Unit Revenue and Trends

 

Q1 2021

 

vs. Q1 2020

CCG

 

$10.6 billion

 

up

8%

DCG

 

$5.6 billion

 

down

20%

Internet of Things

 

 

 

 

 

IOTG

 

$914 million

 

up

4%

Mobileye

 

$377 million

 

up

48%

NSG

 

$1.1 billion

 

down

17%

PSG

 

$486 million

 

down

6%

First-quarter revenue exceeded January guidance by $1.1 billion led by continued, strong PC demand. PC unit volumes were up 38 percent YoY, and notebook volumes set a new Intel record. The company also saw initial recovery of Enterprise and Government sales in the Data Center Group (DCG). Intel also achieved better-than-expected revenue in Internet of Things Group (IOTG) and Mobileye, and Mobileye set a new revenue record in the quarter.

In the first quarter of 2021, Intel shipped new CPU products and announced key customer design wins. The company also completed the CEO transition to Pat Gelsinger who unveiled Intel's new, differentiated IDM 2.0 strategy for manufacturing, innovation and product leadership.

Business Highlights

       Announced new IDM 2.0 Strategy, including $20 billion capacity expansion plans in Arizona and new Intel Foundry Services.

       Introduced new client processor families including: 11th Gen Intel® Core™ vPro® platform, N-series 10-nanometer Pentium® Silver and Celeron® processors, 11th Gen Intel® Core™ H-series mobile processors and 11th Gen Intel® Core™ S-series desktop processors (code-named “Rocket Lake-S”). 

       Launched new 3rd Gen Intel® Xeon® Scalable processors (code-named “Ice Lake”), including new network-optimized “N-SKUs”.

       Achieved Amazon Web Services High Performance Computing Competency status. 

       Announced 5G network collaboration with Google Cloud. 

       Intel’s Habana AI accelerators and Intel Xeon Scalable processors selected by University of California at San Diego to power new Voyager super computer.
  Shipped new Intel® Agilex™ FPGAs with heterogeneous integration and advanced 3D packaging. 

       Mobileye’s self-driving system, Mobileye Drive™, will be the autonomous “driver” for Udelv’s next-generation electric self-driving delivery vehicle.

Business Outlook

Q2 2021

 

GAAP

 

Non-GAAP

 

 

Approximately

 

Approximately

Revenue

 

$18.9 billion

 

$17.8 billion

Gross Margin

 

55%

 

57%

Tax rate

 

13%

 

13%

Earnings per share

 

$1.05

 

$1.05


 

Full-Year 2021

 

GAAP

 

Non-GAAP

 

 

Approximately

 

Approximately

Revenue

 

$77.0 billion

 

$72.5 billion

Gross Margin

 

54.5%

 

56.5%

Tax rate

 

19%

 

13%

Earnings per share

 

$4.00

 

$4.60

Full-year capital spending

 

$19.0-20.0 billion

 

$19.0-20.0 billion^

Free cash flow

 

N/A

 

$10.5 billion

In the first quarter, the company generated $5.5 billion in cash from operations, paid dividends of $1.4 billion, and used $2.3 billion to repurchase stock.

First-quarter revenue exceeded January guidance by $1.1 billion led by continued, strong PC demand. PC unit volumes were up 38 percent YoY, and notebook volumes set a new Intel record. The company also saw initial recovery of Enterprise and Government sales in the Data Center Group (DCG). Intel also achieved better-than-expected revenue in Internet of Things Group (IOTG) and Mobileye, and Mobileye set a new revenue record in the quarter.

In the first quarter of 2021, Intel shipped new CPU products and announced key customer design wins. The company also completed the CEO transition to Pat Gelsinger who unveiled Intel's new, differentiated IDM 2.0 strategy for manufacturing, innovation and product leadership.

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