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Intel’s Earnings Fall in Fourth Quarter, but Beat Expectations


Brian M. Krzanich, Intel’s chief executive, shared the stage with a BMX rider wearing an Intel Curie Module wearable device at International CES this year. Credit Rick Wilking/Reuters

Intel’s stock activity.

SAN FRANCISCO — Intel Corporation on Thursday reported that its net income in the fourth quarter of 2015 fell 1 percent to $ 3.6 billion, or 74 cents a share, from the year-earlier quarter.

The company said revenue climbed 1 percent, to $ 14.9 billion.

The net income was above the expectations of Wall Street analysts. They had anticipated 63 cents a share on revenue of $ 14.8 billion, according to a survey of analysts by Thomson Reuters.

For all of 2015, Intel revenue was $ 55.4 billion, down 1 percent from 2014. Net income was $ 11.4 billion, down 2 percent.

The price of Intel shares fell about 2 percent in early after-hours trading after the quarterly results were announced.

Stacy J. Smith, Intel’s chief financial officer, called the results “a strong finish to the year” in a release accompanying the earnings.

Intel, based in Santa Clara, Calif., is the world’s largest maker of semiconductors. Once dependent on sales to personal computer makers for most of its revenue, the company has been struggling to adapt to falling PC demand.

Forays into mobile devices like smartphones and tablets have been mostly unsuccessful, and the company has redoubled its efforts to supply chips to computer servers in large data centers, particularly those of the big cloud computing companies like Microsoft and Amazon.

That transition is taking a long time, however. On Thursday, the company said that sales of PC chips were $ 8.8 billion, or 59 percent of revenue, while sales of data center chips were $ 4.3 billion, or 29 percent of revenue. Sales in other areas, like sensor and mobile devices, were far lower.


NYT > Technology

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