Shulou(Shulou.com)11/24 Report--

According to the news in the early morning of October 28, Beijing time, Intel today released the company's third-quarter results for fiscal year 2022. Intel's third-quarter revenue was $15.338 billion, down 20 per cent from $19.192 billion in the same period last year, while net profit was $1.019 billion, down 85 per cent from $6.823 billion in the same period last year, according to the report. Excluding some one-time items (not in accordance with US GAAP), Intel's adjusted net profit in the third quarter was $2.432 billion, down 59 per cent from $5.908 billion in the same period last year.

Intel's third-quarter revenue and adjusted earnings per share both beat Wall Street analysts' expectations, but failed to meet expectations for fourth-quarter and full-year results.

At the same time, Intel announced a cost-cutting and efficiency plan that will cut costs by up to $10 billion between now and 2025. Intel's shares rose more than 5 per cent in after-hours trading as a result.

Main results: Intel's net profit for the quarter ended October 1 was $1.019 billion, down 85% from $6.823 billion in the same period last year, and earnings per share was $0.25, down 85% from $1.67 in the same period last year. Excluding some one-time items (not in accordance with US GAAP), Intel's adjusted net profit in the third quarter was $2.432 billion, down 59 per cent from $5.908 billion in the same period last year, and adjusted earnings per share was 59 per cent. Down 59% from $1.45 in the same period last year.

Intel's third-quarter revenue was $15.338 billion, down 20 per cent from $19.192 billion in the same period last year. Excluding some one-time items (not in accordance with GAAP), Intel also had adjusted revenue of $15.338 billion in the third quarter, down 15 per cent from $18.087 billion in the same period last year.

Intel's third-quarter revenue and adjusted earnings per share both beat Wall Street analysts' expectations. According to data provided by Yahoo Finance Channel, 30 analysts had expected Intel's adjusted earnings per share to reach 32 cents per share on average in the third quarter, while 29 analysts had expected Intel's adjusted revenue to reach 15.25 billion dollars in the third quarter.

Intel posted an operating loss of $175 million in the third quarter, compared with an operating profit of $5.227 billion in the same period last year. Operating profit margin was-1.1%, down 28.4% from 27.2% in the same period last year. Excluding some one-time items (not in accordance with GAAP), Intel's adjusted operating profit was $1.655 billion in the third quarter, compared with $5.744 billion in the same period last year, and its adjusted operating profit margin was 10.8%. Down 21 percentage points from 31.8% in the same period last year.

Intel's third-quarter gross profit was $6.535 billion, compared with $10.746 billion in the same period last year; gross profit margin was 42.6%, down 13.4% from 56.0% in the same period last year. Excluding some one-time items (not in accordance with GAAP), Intel's adjusted gross profit in the third quarter was $7.037 billion, compared with $10.544 billion in the same period last year, and its adjusted gross profit margin was 45.9%. Down 12.4 percentage points from 58.3% in the same period last year.

Intel's operating expenses were $6.71 billion in the third quarter, up 10 per cent from $5.519 billion in the same period last year. Of this total, R & D expenditure was $4.302 billion, compared with $3.803 billion in the same period last year; marketing, general and administrative expenses were $1.744 billion, compared with $1.674 billion in the same period last year; and restructuring and other expenses were $664 million, compared with $42 million in the same period last year. Excluding some one-time items (not in accordance with GAAP), Intel's adjusted operating expenses were $5.382 billion in the third quarter, up 12% from $4.8 billion in the same period last year.

Intel paid a tax rate of 642.0% in the third quarter, compared with 0.5% in the same period last year. Excluding some one-time items (not in accordance with GAAP), Intel's adjusted tax rate was-38.7% in the third quarter, compared with-4.2% in the same period last year.

Performance by division: Intel's third-quarter net revenue from the customer computing business (including chip revenue) was $8.124 billion, compared with $9.788 billion in the same period last year, down 17% from a year earlier; operating profit was $1.655 billion, compared with $3.592 billion in the same period last year. Of this total, revenue from the desktop business was $3.222 billion, compared with $3.119 billion in the same period last year; revenue from the notebook business was $4.41 billion, compared with $5.944 billion in the same period last year; and revenue from other businesses was $492 million, compared with $725 million in the same period last year.

Revenue from Intel's data center and AI businesses was $4.209 billion in the third quarter, compared with $5.778 billion in the same period last year, down 27% from a year earlier, and operating profit was $17 million, compared with $2.293 billion in the same period last year.

Revenue from Intel's network and edge computing business was $2.266 billion in the third quarter, compared with $1.986 billion in the same period last year, up 14% from a year earlier, and operating profit was $75 million, compared with $511 million in the same period last year.

Intel's accelerated computing systems and graphics business had revenue of $185 million in the third quarter, compared with $171 million a year earlier, up 8% from a year earlier, and an operating loss of $378 million, compared with an operating loss of $222 million a year earlier.

Revenue from Mobileye, Intel's self-driving unit, was $450 million in the third quarter, compared with $326 million a year earlier, up 38% from a year earlier, and operating profit was $142 million, compared with $127 million a year earlier.

Intel's contract manufacturing services division (Intel Foundry Services) had revenue of $171 million in the third quarter, compared with $174 million a year earlier, down 2% from a year earlier, and an operating loss of $103 million, compared with an operating loss of $44 million a year earlier.

Intel's revenue from all other businesses was $67 million in the third quarter, compared with $1.133 billion in the same period last year, and an operating loss of $1.583 billion, compared with an operating loss of $1.03 billion in the same period last year.

Performance outlook: fourth quarter performance outlook: Intel expects revenue in the fourth quarter of fiscal year 2022 to reach between $14 billion and $15 billion, and adjusted revenue not in accordance with GAAP will also reach between $14 billion and $15 billion, which falls short of analysts' expectations. The loss per share is expected to be about $0.10, and earnings per share are expected to be about $0.20, not in accordance with GAAP, which also failed to meet analysts' expectations. On average, 29 analysts expect Intel's fourth-quarter adjusted revenue to reach $16.27 billion, while 30 analysts expect Intel's fourth-quarter adjusted earnings per share to reach 66 cents, according to data provided by Yahoo Finance.

Intel also expects a gross profit margin of about 41.4% in the fourth quarter of fiscal 2022, an adjusted gross profit margin of about 45.0% not in accordance with GAAP, and a tax rate of about 40% in accordance with GAAP. The adjusted tax rate that is not in accordance with GAAP is about 14%.

Full-year performance outlook: Intel expects revenue of about $63 billion to $64 billion in fiscal year 2022, and between $63 billion and $64 billion after adjustment not in accordance with GAAP, failing to meet analysts' expectations Earnings per share will reach about $2.00, and earnings per share, which are not adjusted in accordance with GAAP, will reach about $1.95, also falling short of analysts' expectations. According to data provided by Yahoo Finance, 38 analysts on average expect Intel's adjusted revenue to reach $65.26 billion in fiscal 2022, while 37 analysts expect Intel's adjusted earnings per share to reach $2.15 in fiscal 2022.

Intel also estimates that the gross profit margin for fiscal year 2022 will be about 43.1%, which is not adjusted in accordance with GAAP, which is about 47.5%; the tax rate in accordance with GAAP is about-5%; the adjusted tax rate that is not in accordance with GAAP is about 2%; capital expenditure is about $25 billion, and adjusted capital expenditure that is not in accordance with GAAP is about $21 billion. Adjusted free cash flow is approximately-$2 billion to-$4 billion.

Share price movements: Intel shares fell 94 cents, or 3.45 percent, to close at $26.27 in regular Nasdaq trading. Intel shares surged $1.38, or 5.25 per cent, to $27.65 in after-hours trading as of 05:23 EDT (05:23 Beijing time on Friday). In the past 52 weeks, Intel's highest price is $56.28 and its lowest price is $24.59.

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