Intel reported first-quarter revenue of USD 12.8 billion, unchanged from the year-earlier period and down 13 percent from the previous quarter. The result was in line with its earlier forecast cut, which it blamed on a weak business market for desktop PCs and supply chain shortages in the PC industry. The slower demand for PCs offset double-digit revenue growth in the company's data centre, IoT and memory businesses. Quarterly operating profit was still up 4 percent year-on-year to USD 2.6 billion, and net profit rose to USD 2.0 billion or 41 cents a share from USD 1.9 billion or 38 cents a share a year ago.
Intel expects a seasonal recovery in revenues in the second quarter to around USD 13.2 billion. The gross margin should also improve around 1.5 percent points from Q1 to 62 percent. Over the full year, the company lowered its outlook to flat revenues and a gross margin of 61 percent, after the weak start to the year. It previously forecast mid single-digit growth and a margin of 62 percent.
