Intel(US:INTC)2024-04-25 20:09Revenue and Financial Performance - Q1 2024 revenue was $12.7 billion, up 9% year over year (YoY)[2] - Net revenue for Q1 2024 was $12.724 billion, an increase of 8.6% compared to $11.715 billion in Q1 2023[22] - Intel's total revenue for the three months ended March 30, 2024, was $17.077 billion, compared to $16.428 billion in the same period last year, representing a 4% increase[25] - Q2 2024 revenue is forecasted to be between $12.5 billion and $13.5 billion, with non-GAAP EPS expected at $0.10[2] Earnings and Profitability - Q1 2024 GAAP EPS was $(0.09), while non-GAAP EPS was $0.18[2] - Gross margin improved to $5.217 billion in Q1 2024 from $4.008 billion in Q1 2023, reflecting a 30.2% increase[22] - Operating loss decreased to $1.069 billion in Q1 2024 from $1.468 billion in Q1 2023, showing a 27.2% improvement[22] - Net loss attributable to Intel was $381 million in Q1 2024, significantly reduced from a net loss of $2.758 billion in Q1 2023[22] - Intel's operating income for the three months ended March 30, 2024, was $625 million, a significant improvement from an operating loss of $880 million in the same period last year[25] - Intel's total Intel Products operating income for the three months ended March 30, 2024, was $3.311 billion, compared to $1.133 billion in the same period last year, a 192% increase[25] - Intel's total all other operating loss for the three months ended March 30, 2024, was $212 million, compared to an operating income of $347 million in the same period last year[25] - GAAP gross margin for Q1 2024 was $5,217 million, compared to $4,008 million in Q1 2023, with a GAAP gross margin percentage of 41.0% and 34.2% respectively[32] - Non-GAAP gross margin for Q1 2024 was $5,739 million, compared to $4,494 million in Q1 2023, with a Non-GAAP gross margin percentage of 45.1% and 38.4% respectively[32] - GAAP operating loss for Q1 2024 was $(1,069) million, compared to $(1,468) million in Q1 2023, with a Non-GAAP operating income of $723 million and $(294) million respectively[32] - GAAP net loss attributable to Intel for Q1 2024 was $(381) million, compared to $(2,758) million in Q1 2023, with a Non-GAAP net income of $759 million and $(169) million respectively[32] - GAAP earnings per share (EPS) for Q1 2024 was $(0.09), compared to $(0.66) in Q1 2023, with a Non-GAAP EPS of $0.18 and $(0.04) respectively[33] - Q2 2024 outlook for GAAP gross margin percentage is 40.2%, with a Non-GAAP gross margin percentage outlook of 43.5%[35] - Q2 2024 outlook for GAAP EPS is $(0.05), with a Non-GAAP EPS outlook of $0.10[35] Product and Segment Performance - Intel Products revenue grew 17% YoY to $11.9 billion, driven by a 31% increase in Client Computing Group (CCG) revenue to $7.5 billion[7] - Intel Foundry revenue decreased 10% YoY to $4.4 billion[7] - Intel expects to exceed its prior forecast of 40 million AI PCs by the end of 2024, with over 5 million AI PCs shipped since the December 2023 launch of Intel Core™ Ultra processors[8] - Intel Gaudi 3 AI accelerator is projected to deliver 50% faster inference and 40% greater inference power efficiency compared to Nvidia H100 on leading generative AI models[8] Financial Outlook and Forecasts - Q2 2024 gross margin is expected to be 40.2% on a GAAP basis and 43.5% on a non-GAAP basis[13] - Intel Foundry announced an increased expected lifetime deal value for external customers of more than $15 billion[9] Cash Flow and Investments - Cash and cash equivalents decreased to $6.923 billion at the end of Q1 2024 from $7.079 billion at the end of Q4 2023[23] - Short-term investments decreased to $14.388 billion at the end of Q1 2024 from $17.955 billion at the end of Q4 2023[23] - Total assets increased slightly to $192.733 billion at the end of Q1 2024 from $191.572 billion at the end of Q4 2023[23] - Net cash used in operating activities was $1.223 billion in Q1 2024, compared to $1.785 billion in Q1 2023[24] - Additions to property, plant, and equipment were $5.970 billion in Q1 2024, down from $7.413 billion in Q1 2023[24] - Net cash provided by financing activities was $3.630 billion in Q1 2024, compared to $7.394 billion in Q1 2023[24] - Adjusted free cash flow for Q1 2024 was $(6,178) million, compared to $(8,764) million in Q1 2023[33] Sustainability and Environmental Impact - Intel used 99% renewable electricity in its factories worldwide and achieved net positive water in the United States, Costa Rica, Mexico, and India as of the end of 2023[10] Non-GAAP Financial Measures - Intel's non-GAAP financial measures exclude items such as acquisition-related adjustments, share-based compensation, restructuring and other charges, and gains/losses on equity investments to provide a clearer view of core operating performance[29][30] - Intel uses a long-term projected non-GAAP tax rate of 13% to calculate the income tax effects of non-GAAP adjustments, which is reviewed annually and may change due to factors such as global tax environment and geographic earnings mix[27] - Intel's adjusted free cash flow is a non-GAAP measure used to assess liquidity, capital resources, and quality of earnings, calculated by adjusting operating cash flow for capital expenditures and finance lease payments[30]