Intel Eyes an IoT & 5G Future
Intel is pushing ahead with trying to open up new markets such as 5G and the Internet of Things (IoT) as the chipmaker posted mixed results overall and missed on in its data center business.
Intel Corp. (Nasdaq: INTC)'s revenue for the first quarter was $14.8 billion, compared to $13.8 billion in the same period last year. Analysts had expected revenue of $14.81 billion according to Thomson Reuters . Earnings per share (EPS) of $0.66 beat analyst expectations of $0.65. Net income for the quarter was $3 billion, compared to $2 billion 12 months ago.
The silicon titan posted $4.2 billion in revenue for its data center group for the quarter. Analysts had been expecting revenue to increase 10% to $4.4 billion, according to FactSet StreetAccount.
Intel is trying to develop new markets to move it beyond its reliance on the PC market. The company especially wants to be a player in the connected car market, putting together a $15 billion deal to buy Israeli company Mobileye in March. (See Intel Buying Mobileye for $15 Billion.)
Intel's Internet of Things revenue for the quarter stands at $721 million, up 11% year-on-year, before the Mobileye deal closes.
On the earnings call, Intel's CEO Brian Krzanich claimed that the company is "in the lead" in developing next-generation 5G wireless chips. The CEO says that the company will deliver chips "from the modem" to the basestation and back to integrated backhaul.
Ironically, even as Intel tries to look beyond PCs, its Client Computing Group delivered $8 billion of Intel's total revenue, up 6% year-on-year, as unit prices rose.
Intel's shares are up 50 cents on the results at $37.43 in after-market trading.
— Dan Jones, Mobile Editor, Light Reading