$1.5 Billion Ain’t Bad For Three Months Work
The changes Intel has made internally, unfortunately including letting a lot of people go, have succeeded in bringing them back to profitability. Their total revenue might be down 15% from this quarter in 2022, a mere $12.9 billion compared to $15.3 billion, but their net income increased by about $2 billion. Intel went from a $0.5 billion loss to a $1.5 billion profit thanks to their cost cutting measures, as far as sales go they are still decreasing; unsurprising in the current economy.
Arc sales are buried in their Client Computing Group so it is hard to say how much the GPUs contributed to the $6.8 billion that business unit generated and how much was from CPU sales. They do mention that the Intel Arc Pro A60 and Pro A60M contributed to the sales, as well as decent demand for 13th Gen Core processors. Hopefully this will translate to more job security for those working at Intel as well as hope for the continued development of Battlemage.
Strong execution, including progress towards our $3 billion in cost savings in 2023, contributed to the upside in the quarter. We remain focused on operational efficiencies and our Smart Capital strategy to support sustainable growth and financial discipline as we improve our margins and cash generation and drive shareholder value.