Intel(US:INTC)2024-10-31 20:07Revenue and Financial Performance - Q3 2024 revenue was $13.3 billion, down 6% compared to Q3 2023[1][4] - Net revenue for Q3 2024 decreased to $13.284 billion from $14.158 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 $14.158 billion in Q3 2023[24] - Q4 2024 revenue guidance is $13.3 billion to $14.3 billion, with non-GAAP EPS expected to be $0.12[1][10] Earnings and Losses - Q3 2024 GAAP EPS was $(3.88), impacted by $15.9 billion in impairment charges and $2.8 billion in restructuring charges[1][5] - Operating loss for Q3 2024 widened to $9.057 billion from $8 million in Q3 2023[20] - Net loss attributable to Intel for Q3 2024 was $16.639 billion, compared to a net income of $297 million in Q3 2023[20] - Earnings per share (diluted) for Q3 2024 was a loss of $3.88, compared to a gain of $0.07 in Q3 2023[20] - GAAP operating loss for Q3 2024 was $9.057 billion, compared to a loss of $8 million in Q3 2023[31] - Non-GAAP operating loss for Q3 2024 was $2.369 billion, versus a profit of $1.924 billion in Q3 2023[31] - GAAP net loss attributable to Intel for Q3 2024 was $16.639 billion, compared to a profit of $297 million in Q3 2023[31] - Non-GAAP net loss attributable to Intel for Q3 2024 was $1.976 billion, versus a profit of $1.739 billion in Q3 2023[31] Gross Margin - Gross margin for Q3 2024 dropped significantly to $1.997 billion compared to $6.018 billion in Q3 2023, a decrease of 66.8%[20] - GAAP gross margin for Q3 2024 was $1.997 billion, a significant decrease from $6.018 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 $3.3 billion, up 9% year-over-year[7] - Client Computing Group revenue for Q3 2024 was $7.330 billion, down from $7.867 billion in Q3 2023[24] - Data Center and AI revenue increased to $3.349 billion in Q3 2024 from $3.076 billion in Q3 2023[24] - Intel Foundry revenue decreased to $4.352 billion in Q3 2024 from $4.732 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 $3 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 $7.079 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 $6.847 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 $19.054 billion in the same period in 2023[23] - Adjusted free cash flow for Q3 2024 was negative $2.702 billion, compared to positive $943 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 $193.542 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]