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Intel(INTC) - 2024 Q3 - Quarterly Results
INTCIntel(INTC)2024-10-31 20:07
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Revenue and Financial Performance - Q3 2024 revenue was 13.3billion,down613.3 billion, down 6% compared to Q3 2023[1][4] - Net revenue for Q3 2024 decreased to 13.284 billion from 14.158billioninQ32023,adeclineof6.214.158 billion in Q3 2023, a decline of 6.2%[20] - Intel's total net revenue for Q3 2024 was 13.284 billion, a decrease from 14.158billioninQ32023[24]−Q42024revenueguidanceis14.158 billion in Q3 2023[24] - Q4 2024 revenue guidance is 13.3 billion to 14.3billion,withnon−GAAPEPSexpectedtobe14.3 billion, with non-GAAP EPS expected to be 0.12[1][10] Earnings and Losses - Q3 2024 GAAP EPS was (3.88),impactedby(3.88), impacted by 15.9 billion in impairment charges and 2.8billioninrestructuringcharges[1][5]−OperatinglossforQ32024widenedto2.8 billion in restructuring charges[1][5] - Operating loss for Q3 2024 widened to 9.057 billion from 8millioninQ32023[20]−NetlossattributabletoIntelforQ32024was8 million in Q3 2023[20] - Net loss attributable to Intel for Q3 2024 was 16.639 billion, compared to a net income of 297millioninQ32023[20]−Earningspershare(diluted)forQ32024wasalossof297 million in Q3 2023[20] - Earnings per share (diluted) for Q3 2024 was a loss of 3.88, compared to a gain of 0.07inQ32023[20]−GAAPoperatinglossforQ32024was0.07 in Q3 2023[20] - GAAP operating loss for Q3 2024 was 9.057 billion, compared to a loss of 8millioninQ32023[31]−Non−GAAPoperatinglossforQ32024was8 million in Q3 2023[31] - Non-GAAP operating loss for Q3 2024 was 2.369 billion, versus a profit of 1.924billioninQ32023[31]−GAAPnetlossattributabletoIntelforQ32024was1.924 billion in Q3 2023[31] - GAAP net loss attributable to Intel for Q3 2024 was 16.639 billion, compared to a profit of 297millioninQ32023[31]−Non−GAAPnetlossattributabletoIntelforQ32024was297 million in Q3 2023[31] - Non-GAAP net loss attributable to Intel for Q3 2024 was 1.976 billion, versus a profit of 1.739billioninQ32023[31]GrossMargin−GrossmarginforQ32024droppedsignificantlyto1.739 billion in Q3 2023[31] Gross Margin - Gross margin for Q3 2024 dropped significantly to 1.997 billion compared to 6.018billioninQ32023,adecreaseof66.86.018 billion in Q3 2023, a decrease of 66.8%[20] - GAAP gross margin for Q3 2024 was 1.997 billion, a significant decrease from 6.018billioninQ32023[31]−Non−GAAPgrossmarginpercentageforQ32024was18.06.018 billion in Q3 2023[31] - Non-GAAP gross margin percentage for Q3 2024 was 18.0%, down from 45.8% in Q3 2023[31] - Non-GAAP gross margin percentage for Q4 2024 is expected to be 39.5%[34] Business Segments - Client Computing Group (CCG) revenue was 7.3 billion, down 7% year-over-year[7] - Data Center and AI (DCAI) revenue was 3.3billion,up93.3 billion, up 9% year-over-year[7] - Client Computing Group revenue for Q3 2024 was 7.330 billion, down from 7.867billioninQ32023[24]−DataCenterandAIrevenueincreasedto7.867 billion in Q3 2023[24] - Data Center and AI revenue increased to 3.349 billion in Q3 2024 from 3.076billioninQ32023[24]−IntelFoundryrevenuedecreasedto3.076 billion in Q3 2023[24] - Intel Foundry revenue decreased to 4.352 billion in Q3 2024 from 4.732billioninQ32023[24]CostReductionsandRestructuring−Intelisontracktoachieve4.732 billion in Q3 2023[24] Cost Reductions and Restructuring - Intel is on track to achieve 10 billion in cost reductions by 2025[1][5] - Restructuring and other charges in Q3 2024 included employee severance, real estate exits, and asset impairments[29] Technology and Partnerships - Intel 18A process node is progressing well, with lead products Panther Lake and Clearwater Forest meeting early milestones[9] - Intel and AWS are finalizing a multi-billion-dollar partnership for custom Xeon 6 and AI fabric chips[9] - Intel was awarded up to 3billionindirectfundingundertheCHIPSandScienceActfortheSecureEnclaveprogram[9]−Intelplanstoshipover100millionAIPCsbytheendof2025[8]CashFlowandCapitalExpenditures−Cashandcashequivalentsincreasedto3 billion in direct funding under the CHIPS and Science Act for the Secure Enclave program[9] - Intel plans to ship over 100 million AI PCs by the end of 2025[8] Cash Flow and Capital Expenditures - Cash and cash equivalents increased to 8.785 billion in Q3 2024 from 7.079billionattheendof2023[22]−NetcashprovidedbyoperatingactivitiesfortheninemonthsendedSep28,2024,was7.079 billion at the end of 2023[22] - Net cash provided by operating activities for the nine months ended Sep 28, 2024, was 5.123 billion, down from 6.847billioninthesameperiodin2023[23]−Additionstoproperty,plant,andequipmentfortheninemonthsendedSep28,2024,were6.847 billion in the same period in 2023[23] - Additions to property, plant, and equipment for the nine months ended Sep 28, 2024, were 18.110 billion, slightly lower than 19.054billioninthesameperiodin2023[23]−AdjustedfreecashflowforQ32024wasnegative19.054 billion in the same period in 2023[23] - Adjusted free cash flow for Q3 2024 was negative 2.702 billion, compared to positive 943millioninQ32023[32]−Non−GAAPnetcapitalspendingforfull−year2024isprojectedtobe943 million in Q3 2023[32] - Non-GAAP net capital spending for full-year 2024 is projected to be 11.0 billion[36] Assets and Liabilities - Total assets increased slightly to 193.542billioninQ32024from193.542 billion in Q3 2024 from 191.572 billion at the end of 2023[22] - Total Intel employees decreased to 124,100 in Q3 2024 from 125,200 in Q3 2023[21] Financial Metrics and Adjustments - Intel uses a long-term projected non-GAAP tax rate of 13% for financial adjustments[26] - Adjusted free cash flow is used by Intel to assess liquidity and capital resources[29] - Net capital spending is a key metric for Intel's capital investment activities[30] - Non-GAAP R&D and MG&A for full-year 2025 is estimated to be $17.5 billion[36]