Intel missed analyst estimates for the second fiscal quarter, reporting slightly lower profits, plus revenue that climbed just 2 percent versus a year ago. Intel reported profits of $2.0 billion, down 2 percent from a year ago, on second-quarter revenue of $12.8 billion, up 2 percent from the same period.
Newly appointed chief executive Brian Krzanich said that the company would continue to develop microprocessors and other products for all segments of the market, with a special emphasis on low-power, ultramobile computers. But the company has suffered as customers increasingly turn to smartphones and tablets for their computing needs, away from the personal computers that Intel has long powered.
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"Looking ahead, the market will continue buying a wide range of computing products," Krzanich said. "Intel Atom and Core processors and increased SoC [system on a chip] integration will be Intel's future. We will leave no computing opportunity untapped. To embrace these opportunities, I've made it Intel's highest priority to create the best products for the fast growing ultramobile market segment."
As proof, Krzanich cited its design win into the Samsung Galaxy Tab 3, where Intel will ship both an Intel Atom processor and Intel LTE radio circuitry to connect it to the Internet.
Intel's revenue in the PC Client Group fell 7.5 percent year over year, a victim of the continuing slide in the PC market. The division's revenue climbed 1.4 percent, however. Even revenue in the Data Center Group, which includes Intel's high-margin Xeon processors, was flat versus last year, although it grew by 8.1 percent.
Analysts polled by Yahoo Finance expected Intel to report earnings of 40 cents per share, down from 54 cents a year ago, on revenue of $12.9 billion.
This story, "Intel misses profit estimates as it shifts toward ultramobiles" was originally published by PCWorld.