First-quarter revenue of $11.7 billion, down 36% year over year (YoY).
- First-quarter GAAP earnings (loss) per share (EPS) attributable to Intel was $(0.66); non-GAAP EPS attributable to Intel was $(0.04).
- Forecasting second-quarter 2023 revenue of $11.5 billion to $12.5 billion; expecting second-quarter EPS of $(0.62); non-GAAP EPS of $(0.04).
SANTA CLARA, Calif., April 27, 2023 – Intel Corporation today reported first-quarter 2023 financial results.
“We delivered solid first-quarter results, representing steady progress with our transformation,” said Pat Gelsinger, Intel CEO. “We hit key execution milestones in our data center roadmap and demonstrated the health of the process technology underpinning it. While we remain cautious on the macroeconomic outlook, we are focused on what we can control as we deliver on IDM 2.0: driving consistent execution across process and product roadmaps and advancing our foundry business to best position us to capitalize on the $1 trillion market opportunity ahead.”
David Zinsner, Intel CFO, said, “We exceeded our first-quarter expectations on the top and bottom line, and continued to be disciplined on expense management as part of our commitment to drive efficiencies and cost savings. At the same time, we are prioritizing the investments needed to advance our strategy and establish an internal foundry model, one of the most consequential steps we are taking to deliver on IDM 2.0.”
Q1 2023 Financial Highlights
|
|
GAAP |
|
Non-GAAP |
||||
|
|
Q1 2023 |
Q1 2022 |
vs. Q1 2022 |
|
Q1 2023 |
Q1 2022 |
vs. Q1 2022 |
|
Revenue ($B) |
$11.7 |
$18.4 |
down 36% |
|
|
|
|
|
Gross Margin |
34.2% |
50.4% |
down 16.2 ppts |
|
38.4% |
53.1% |
down 14.7 ppts |
|
R&D and MG&A ($B) |
$5.4 |
$6.1 |
down 11% |
|
$4.8 |
$5.5 |
down 13% |
|
Operating Margin |
(12.5)% |
23.7% |
down 36.2 ppts |
|
(2.5)% |
23.1% |
down 25.6 ppts |
|
Tax Rate |
(139.0)% |
16.0% |
n/m1 |
|
13.0% |
13.0% |
— |
|
Net Income (loss) Attributable to Intel ($B) |
$(2.8) |
$8.1 |
down 134% |
|
$(0.2) |
$3.6 |
down 105% |
|
Earnings (loss) Per Share Attributable to Intel |
$(0.66) |
$1.98 |
down 133% |
|
$(0.04) |
$0.87 |
down 105% |
In the first quarter, the company used $(1.8) billion in cash from operations and paid dividends of $1.5 billion.
Business Unit Summary
Intel previously announced the organizational change to integrate its Accelerated Computing Systems and Graphics Group into its Client Computing Group and Data Center and AI Group. This change is intended to drive a more effective go-to-market capability and to accelerate the scale of these businesses, while also reducing costs. As a result, the company modified its segment reporting in the first quarter of 2023 to align to this and certain other business reorganizations. All prior-period segment data has been retrospectively adjusted to reflect the way the company internally receives information and manages and monitors operating segment performance starting in fiscal year 2023.
|
Business Unit Revenue and Trends |
Q1 2023 |
|
vs. Q1 2022 |
|
|
Client Computing Group (CCG) |
$5.8 billion |
|
down |
38% |
|
Data Center and AI (DCAI) |
$3.7 billion |
|
down |
39% |
|
Network and Edge (NEX) |
$1.5 billion |
|
down |
30% |
|
Mobileye |
$458 million |
|
up |
16% |
|
Intel Foundry Services (IFS) |
$118 million |
|
down |
24% |
Business Highlights
• Intel continues to be on track to meet its goal of achieving five nodes in four years, with two of the five nodes nearly complete. Intel 7 is in high-volume manufacturing and CCG's Meteor Lake product on Intel 4 is ramping production wafer starts for an expected launch in the second half of 2023. Intel 3, Intel 20A, and Intel 18A remain on track.
