Intel grew revenue 20%to $ 19.7 billion in Q2 2020, but key manufacturing upgrade delay

Intel reported that its income rose 20% to $ 19.7 billion in the second quarter of the epidemic, encourage people to buy a computer so that they Cold work at home the better. But the company said that it encountered delays in raising its 7-nanometer production plant, which sent the company’s stock after-hours trading.

PC-centric revenue growth of 7% compared to a year ago, the data center revenue growth of 34%, accounted for 52%of total revenue. Earnings per share is 1. 19, up 29%, while non-GAAP earnings per share of $ 1. 23. Analysts expect Intel to report earnings of $ 1. 11 a share in income of $ 18. 54 billion dollars. After the transaction, Intel’s share fell by 9% to $ 54. 93 a share.

Intel Chief Executive Officer Bob Swan said it was a”good quarter, well above our expectations”in a statement. His memory’s cloud delivery services, work and understand the family environment and the additional member of the 5G network.

Intel said it is accelerating the transition to 10 meters, but it noted that its next-generation manufacturing, which will provide higher production, faster chips, and lower costs-has been delayed compared to its prior expectations.

Throughout the year, Intel hopes based on non-GAAP earnings per share of $ 4. 85(flat with a year ago)dollar revenues of 75 billion USD(accounting for 4% from a years ago). For the second quarter, the data center group revenue of $ 7.1 billion, up 43%. The Internet of Things group had revenue of $ 670 million, a decrease of 32%. Of income is 1. 46 billion U.S. dollars, down 27%. The Nuclear Suppliers Group(flash memory)income of $ 1.7 billion, up 76%. PSG(programmable chip)income of $ 501 million, up 2%. And computer division, CCG, saw revenue of $ 9.5 billion, up 7%.

Intel says he saw the strong sales of cloud, laptop, memory, and 5G of product. Intel introduced its third-generation of Intel can be extended to the strong processor in the quarter.

Intel's contributions more than $ 50 million to combat coronavirus.

Above: Intel has donated more than $ 50 million to combat coronavirus.

Image credit: Intel

Intel said that PC chip sales were strong in the quarter due to notebook power driven to continue working and learning at home the power of COVID-19, which also contributed to the volume decline in machine demand is transferred to the laptop.

Intel has its code-named Tiger Lake 10-nanometer product launch soon, it is ready to Ice Lake Central server processing unit(Cpu)for initiating the end of the year. In the lower half of 2021 year, Intel is expected to offer a new line of customers Cpu(codenamed Alder Lake), which will include its first 10 nm based on the desktop CPU, and a new 10 nano-based servers(code-named Sapphire-Whitewater).

The company of 7 nm based CPU products time is the transfer of about six months for the prior expectations. The main driving force is the production of Intel’s 7 nm process, which according to recent data, is the trend now, after a year the company’s internal goals.

A 7 nm process, the width between the circuits is 7 nanometers wide, a nanometer is one billionth of a meter. By moving from 10 nm to 7 nm manufacturing that Intel can be miniaturized its circuit, cut costs, accelerate performance, and accelerate production.

“Article 7 nm(delay)is not a positive announcement because many products rely on it,”said Patrick Moorhead, the analysis in the wilds of insights and strategy, in an e-mail, to lock or unlock. “Knowing Intel, there is always the backup which is the backup, and I am sure that we will hear about the enhancement for 10 nm in order to increase its competitiveness. The company has completed a Mature economy, particularly in the data center, laptops and a commercial product line, in the 14 nm when the world came to power volume level of 10 nm.”

Intel projected revenue of $ 18. 2 billion dollars in the 3rd quarter, with operating profit down 30% from a year ago, earnings per share 1. 10 U.S. dollars, down 22% from a year ago.

In the analyst call, Swan said that Intel’s emergency plan for launch of the product, if it can not produce 7-nm chips in a timely manner. This may include a contingency contract to use the chip manufacturer to make its chips. This is a big emergency, considering that Intel spends billions of dollars a year to keep it inside the chip manufacturing technology stream.

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