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Intel achieves record results, but misses revenue targets and weak prospects



Intel today released its financial results for the full year and fourth quarter of 2018. Overall, the company recorded a record high of $ 70.8 billion for the full year. However, fourth-quarter performance lagged analyst expectations. The company also underperformed its forecast for 201

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Intel's CEO Search Leading Many others believe that win-win speculation would lead to a new venture. Unfortunately, Intel's interim CEO Bob Swan has disappointed this hope by saying that the company is still looking for the right candidate. "I am confident that the board will close a new CEO in the near future, and we will not be distracted in the meantime." from the void.

Many of Intel's income challenges are due to its recent success: Building a number of record-breaking locations is difficult and the company's market share is large in several key segments such as desktop PCs and data centers, meaning it's in terms of stock growth The challenges of the US-China trade war, the slowdown in the Chinese economy, 14-nanometer processor-related production bottlenecks, and declining NAND prices are unsurpassed, with Intel posting a sharp rise.

Intel says its 10nm processors are on track for mass entry in 2019 and expects the shortage to continue until the end of the second quarter, and in the meantime, the company will continue to focus its production efforts on high-margin products the lack of cheap desktop pr will stop ozessoren.

Although revenue targets were missed, Intel still delivered impressive numbers given the environment. It was estimated that Intel's total revenue was ~ $ 19 billion, which led to a collapse in trading after the close. However, the company's fourth-quarter revenue of $ 18.7 billion was an increase of 9% over the previous year (YoY), much of which fell on the back of data centers (data center, etc.), achieving a solid profit of 9%. year on year. In the PC-centric business, the company grew 10% year-on-year. However, a large part of these profits came from the sale of modems. Overall, PC volume declined 2% year-over-year, which is not surprising given the continuing processor shortages.

Intel's notebook volume dropped 10%, and desktop volume was down 7% sequentially, even though the company increased its notebook volume by a total of 4% compared to 2017. Desktops did not perform well with 6%. Volume decline year-on-year, largely offset by an 11% increase in the average selling price (ASP). The Data Center Group (DCG) also performed well, with volumes up 13% and ASP up 7%. However, sales targets were missed.

Intel's margins dropped in particular from 63% to 60%, mainly due to increased investments in increasing production.

Intel's growth in data center segments has slowed, due to large orders being processed earlier this year. Industry analysts reported large orders earlier in the year as Chinese data centers built up inventories in anticipation of the threat of a trade war. Therefore, it is logical to assume that most of the new deployments come from the existing inventory.

Falling NAND prices detracted from the profitability of the Nonvolatile Storage Group (NSG), meaning that revenue growth of 25% year-on-year simply caused the unit to break even. Intel boss Bob Swan admitted that Micron had officially taken over the participation of Intel in the joint venture IM Flash Technologies. Intel and Micron are jointly producing NAND and 3D XPoint (Optane) memory, but Swan points out that Intel has its own manufacturing facilities and long-term supply contracts with Micron beyond the termination of the partnership.

Intel's Predictions for $ 16 The sales volume for the first quarter of 2019 is essentially unchanged. In 2019, sales will increase by 1% to $ 71.58 billion.

Overall, the company's record results and outlook for 2019 in the investor community are considered somewhat lukewarm. Intel called the increased competition in some of its segments, along with the other factors mentioned above, a headwind for 2019, but did not explicitly mention AMD as a source.


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