Analyst Conference Summary

semiconductor technology


conference date: July 27, 2017 @ 2:00 PM Pacific Time
for quarter ending: July 1, 2017 (Q2; second quarter 2017)

Well, I finished selling my AMD stock on July 26, 2017. In the future I could buy more AMD, or I could buy INTC, depending on price and outlook.
Forward-looking statements

Due to time limitations, I am just recording basic data for now. -- WPM

Overview: Strong quarter, raised guidance.

Basic data (GAAP):

Revenue was $14.8 billion, flat sequentially from $14.8 billion and up 9% from $13.5 billion year-earlier.

Net income was $2.8 billion, down 7% sequentially from $3.0 billion, and up 111% from $1.3 billion year-earlier.

GAAP EPS (diluted) was $0.58, down 5% sequentially from $0.61, but up 115% from $0.27 year-earlier.


Raised full year 2017 outlook to:

Revenue $61.3 billion.

GAAP EPS $2.66; non-GAAP EPS $3.00.

Conference Highlights:

Brian Krzanich, CEO said "We also launched new Intel Core, Xeon and memory products that reset the bar for performance leadership, and we’re gaining customer momentum in areas like AI and autonomous driving. With industry-leading products and strong first-half results, we’re on a clear path to another record year."

Non-GAAP numbers: Net income $3.5 billion, up 9% sequentially from $3.2 billion, and up 23% from $2.9 billion year-earlier. Diluted EPS $0.72, up 9% sequentially from $0.66 and up 22% from $0.59 year-earlier. [Intel usually only gives GAAP numbers. They gave non-GAAP numbers this quarter to account for the Altera acquisition.] 63.0% gross margin.

Client Computing group revenue was $8.2 billion, up 2.5% sequentially from $8.0 billion, and up 12% from year-earlier.

Data Center group revenue was $4.4 billion, up 5% sequentially from $4.2 billion, and up 9% from year-earlier.

Internet of Things group revenue was $720 million, down slightly sequentially from $721 million, and up 26% from year-earlier.

Memory segment (NAND) had revenue of $874 million, up 1% sequentially from $866 million and up 58% from year-earlier.

Programmable Solutions Group (formerly Altera) revenue was $440 million, up 4% sequentially from $425 million. down 5% from year-earlier when it was Altera.

GAAP gross margin was %, up sequentially from 61.8%, and up from % year-earlier.

Cash and equivalents balance $19.2 billion, up sequentially from $17.3 billion. $7.4 billion cash from operations. $1.3 billion used for stock repurchases. $1.3 billion was paid out in dividends. Debt about $32 billion.

Cost of sales was $5.67 billion, leaving $9.10 billion in gross profit. R&D expense was $3.28 billion. Marketing general and administrative was $1.85 billion. With restructuring of $105 million and amortization of $37 million, total operating expense came to $5.27 billion. Leaving operating income of $3.83 billion. Gain on equity investment was $342 million. Interest and other was $403 million. Tax provision about $1.76 billion.



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Disclaimer: My analyst call summaries may include both our condensations of statements made by company representatives and my own analysis. They are not covered by any warranty. I cannot guarantee anything said by company representatives is true. I try not to make errors, but it is possible. Before making or terminating an investment you should always verify any factual basis of your decision.

Copyright 2017 William P. Meyers