WRALtechwire.com logo

Internet of Things helps drive revenue growth for Intel

Jul, 31 2017, 6:02 AM

Editor's note: Intel generates healthy growth across business segments, including Internet of Things, in delivering record 2nd quarter revenue, says Technology Business Research Analyst Daniel Callahan.

HAMPTON, N.H. - In its earnings report last week, Intel grew revenue to $14.8 billion in 2Q17, a year-to-year increase of 14% (excluding divested Intel Security).

Client Computing Group maintained its position as the primary source of Intel’s revenue, growing 12% year-to-year in 2Q17 to $8.2 billion which Intel attributes to ASP strength and inventory build.

Data Center Group followed at $4.4 billion, up 9% year-to-year in 2Q17. Intel noted that Cloud and Communications Service Provider segments contributed 60% of this segment’s revenue in 2Q17.

Internet of Things, while a smaller piece of Intel’s overall revenue, again showed strong growth at 26% year-to-year to $720 million in 2Q17.

Intel noted traction in the industrial, automotive and video segments with its IoT business. Another breakout segment is Intel’s Non-Volatile Memory Solutions Group achieving an impressive 58% growth year-to-year to $874 million in 2Q17.

It wasn’t all good news, however, with Programmable Solutions Group declining 5% year-to-year to $440 million this quarter attributed to loss of business in data center and wireless segments.

Intel’s operating income was up 30% percent to $4.2 billion in 2Q17 attributable to improved profitability across its business segments and due to spending control with R&D and SG&A.

(C) TBR





Menu