Intel earnings call reveals strong revenue despite delays in 10nm chips

  • Intel earnings call reveals strong revenue despite delays in 10nm chips

Intel earnings call reveals strong revenue despite delays in 10nm chips

Intel revealed the updated time frame while discussing its first quarter earnings, in which the company collected a record $16.1 billion in revenue, a healthy 13 percent year-over-year jump, along with a 50 percent increase in profit to $4.5 billion. That shift appeared to be taking hold as revenues for Intel's data center business accounted for nearly half of the company's revenue in the first quarter, the highest proportion ever.

Intel (NASDAQ: INTC) expands the boundaries of technology to make the most awesome experiences possible. Intel did say, though, that it's shipping low volumes of its 10nm Cannon Lake processor now. Non-Volatile Memory Solutions Group (NSG) revenue grew 20 percent as strong demand for storage continued. Though that rate is improving, Intel made the decision to push out its 10nm PC microprocessor products, in volume, until sometime in 2019, rather than the second half of 2018, as it has said previously.

The disappointment of no 10nm chips didn't actually hurt Intel in terms of revenue.

The Client Computing Group (CCG) continued its strong execution and introduced a new lineup of high-performance mobile products including the 8th Gen Intel Core i9 processor and a new Intel Core platform extension that brings together the benefits of 8th Gen Intel Core processors with Intel Optane memory.

During today's conference call, Krzanich briefly mentioned the serious vulnerabilities in Intel's chips that came to light at the beginning of the year, which could potentially allow hackers to take control of a user's PC. A "Cascade Lake" chip will debut for servers later in 2018, he said.

Intel didn't elaborate immediately on the delay in its forthcoming 10 nanometer technology, now under development at its Ronler Acres campus in Hillsboro.

"I am pleased with our progress and proud of how Intel and industry partners addressed this issue collaboratively, with transparency and customer-first urgency", Krzanich told analysts. Moorhead isn't bothered by the delays in 10nm production, either. Krzanich is very confident that they've nailed down what the yield issues are with the 10nm production process, but that ramp could still be well over a year away. It even raised its full year revenue and earnings outlook based on these results.

This story was updated at 3:33 PM to add details of Jim Keller's hire.