Intel’s Q1’16 Earnings Review: Accelerating Focus on Data Center, IoT, Memory & FPGAs To Drive Growth

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Intel (NASDAQ:INTC) reported its Q1 2016 earnings on April 19th. While revenue came in at the lower half of the guided range, non-GAAP EPS beat Wall Street estimates. Just prior to the earnings release, the company announced its restructuring initiative (Read Press Release) to accelerate its evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices. Intel expects the restructuring program to deliver $750 million in savings this year and annual run rate savings of $1.4 billion by mid-2017. A one time charge of approximately $1.2 billion will be recorded for the restructuring in Q2 2016.

Intel plans to intensify its focus on the data center and Internet of Things (IoT) businesses, which it believes are its primary growth engines, with memory and field programmable gate arrays (FPGAs) accelerating these opportunities. Strong growth in these segments have been instrumental in insulating Intel from the drastic decline in PC sales. in Q1 2016, it was no different.

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Have more questions about Intel? See the links below:

>> Will Intel’s Dependence On The PC Market Continue To Decline?

>> How Is Intel’s Revenue & EBITDA Composition Expected To Change By 2020?

>> Will Intel’s Server Revenue Grow In Line With The Global Server Market?

>> Intel In 2015: Growth in Data Center, IoT and Memory Was Offset By A Steep Decline In PC Sales

>> What’s Intel’s Fundamental Value Based On Expected 2016 Results?

>> What Is Intel’s Expected Revenue & EBITDA Growth For 2016?

>> How Important Is The Wearables Market For Intel?

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Intel

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