Tag: bottom-line

Intel has a perky bottom line

Intel-logoIntel’s bottom line is looking a little cheery thanks to the fact that the death of the PC was overstated and people are buying them again.

Intel said that its revenue outlook for 2015 was above what the cocaine nose jobs of Wall Street expected and it was even going to raise its dividend.

Intel claimed that its revenue will grow by a mid-single digit percentage next year which is not what we usually associate with a middle digit.

Analysts on average have been forecasting 3.4 percent revenue growth for 2015.

Chairman Andy Bryant said he saw progress in Intel’s strategy of staking out a big chunk of market share in tablets this year by offering manufacturers subsidies to use its chips.

“I’m not going to tell you I’m proud of losing the kind of money we’re losing but I’m also going to tell you I’m not embarrassed by it like I was a year ago about where we were,” Bryant said. “This is the price you pay for sitting on the sidelines for a number of years and then fighting your way back into the market.”

Intel expects gross margins in 2015 to be 62 percent, plus or minus two percentage points. Analysts on average expected 63 percent gross margins for 2015 and 2014.

Capital spending next year will be about $10.5 billion, the company said, compared to about $11 billion expected in 2014.

Intel also said it would increase its dividend by six cents to 96 cents on an annual basis.

Intel’s results point to the death of the industry myth, put about by the Tame Apple Press that the iPad had killed the PC and everything was going mobile. We said that mobile was a parallel development and that PC sales slumped due to a downturn in the economy coupled with the fact that PCs were lasting longer and there was no need to upgrade.

CEO Brian Krzanich said Intel was on track to exceed its goal of seeing its chips used in 40 million tablets this year. That strategy made Intel the No 2 tablet chip supplier in the June quarter, according to market research firm Strategy Analytics, but it cost the company billions of dollars in subsidies.