Intel Reports Fourth-Quarter and Full-Year 2023 Financial Results
News Summary
-- Fourth-quarter revenue was $15.4 billion, up 10 percent year-over-year
(YoY). Full-year revenue was $54.2 billion, down 14 percent YoY.
-- Fourth-quarter earnings per share (EPS) attributable to Intel was
$0.63; non-GAAP EPS attributable to Intel was $0.54. Full-year EPS
attributable to Intel was $0.40; non-GAAP EPS attributable to Intel was
$1.05.
-- Forecasting first-quarter 2024 revenue of $12.2 billion to $13.2
billion; expecting first-quarter EPS attributable to Intel of $(0.25)
(non-GAAP EPS attributable to Intel of $0.13).
SANTA CLARA, Calif.--(BUSINESS WIRE)--January 25, 2024--
Intel Corporation today reported fourth-quarter and full-year 2023 financial results.
“We delivered strong Q4 results, surpassing expectations for the fourth consecutive quarter with revenue at the higher end of our guidance,” said Pat Gelsinger, Intel CEO. “The quarter capped a year of tremendous progress on Intel’s transformation, where we consistently drove execution and accelerated innovation, resulting in strong customer momentum for our products. In 2024, we remain relentlessly focused on achieving process and product leadership, continuing to build our external foundry business and at-scale global manufacturing, and executing our mission to bring AI everywhere as we drive long-term value for stakeholders.”
David Zinsner, Intel CFO, said, “We continued to drive operational efficiencies in the fourth quarter, and comfortably achieved our commitment to deliver $3 billion in cost savings in 2023. We expect to unlock further efficiencies in 2024 and beyond as we implement our new internal foundry model, which is designed to drive greater transparency and accountability and higher returns on our owners’ capital.”
Q4 2023 Financial Results
GAAP Non-GAAP
---------------------------- -----------------------------
vs. Q4
Q4 2023 Q4 2022 2022 Q4 2023 Q4 2022 vs. Q4 2022
------- ------- ---------- ------- ------- -----------
Revenue ($B) $15.4 $14.0 up 10%
up 6.5
Gross margin 45.7% 39.2% ppts 48.8% 43.8% up 5 ppts
R&D and MG&A
($B) $5.6 $6.2 down 9% $4.9 $5.5 down 11%
Operating up 24.9 up 12.4
margin (loss) 16.8% (8.1)% ppts 16.7% 4.3% ppts
down 12.4
Tax rate 4.6% 17.0% ppts 13.0% 13.0% --
Net income
(loss)
attributable
to Intel ($B) $2.7 $(0.7) n/m* $2.3 $0.6 up 263%
Earnings (loss)
per share
attributable
to
Intel--diluted $0.63 $(0.16) n/m* $0.54 $0.15 up 260%
In the fourth quarter, the company generated $4.6 billion in cash from operations and paid dividends of $0.5 billion.
*Not meaningful
Full reconciliations between GAAP and non-GAAP measures are provided below.
Full-Year 2023 Financial Results
GAAP Non-GAAP
------------------------------ ---------------------------
2023 2022 vs. 2022 2023 2022 vs. 2022
-------- ------ ------------ ----- ----- -------------
Revenue ($B) $54.2 $63.1 down 14%
down 2.6
Gross margin 40.0% 42.6% ppts 43.6% 47.3% down 3.7 ppts
R&D and MG&A
($B) $21.7 $24.5 down 12% $19.0 $21.9 down 13%
Operating down 3.5
margin 0.2% 3.7% ppts 8.6% 12.6% down 4 ppts
down 116.6
Tax rate (119.8)% (3.2)% ppts 13.0% 13.0% --
Net income
attributable
to Intel ($B) $1.7 $8.0 down 79% $4.4 $6.9 down 36%
Earnings per
share
attributable
to
Intel--diluted $0.40 $1.94 down 79% $1.05 $1.67 down 37%
For the full year, the company generated $11.5 billion in cash from operations and paid dividends of $3.1 billion.
Business Unit Summary
Intel previously announced the organizational change to integrate its Accelerated Computing Systems and Graphics Group into its Client Computing Group and Data Center and AI Group. This change is intended to drive a more effective go-to-market capability and to accelerate the scale of these businesses, while also reducing costs. As a result, the company modified its segment reporting in the first quarter of 2023 to align to this and certain other business reorganizations. All prior-period segment data has been retrospectively adjusted to reflect the way the company internally receives information and manages and monitors operating segment performance starting in fiscal year 2023.
Business Unit Revenue and Trends Q4 2023 vs. Q4 2022 2023 vs. 2022 ------------- ------------ ------------- ------------- ---------- Client Computing Group (CCG) $8.8 billion up 33% $29.3 billion down 8% Data Center and AI (DCAI) $4.0 billion down 10% $15.5 billion down 20% Network and Edge (NEX) $1.5 billion down 24% $5.8 billion down 31% Mobileye $637 million up 13% $2.1 billion up 11% Intel Foundry Services (IFS) $291 million up 63% $952 million up 103%
Business Highlights
-- Intel remains on track to meet its goal of achieving five nodes in four
years and regain transistor performance and power performance leadership
by 2025. Intel 3 became Intel's first advanced node offered to IFS
customers, with solid performance and yield progression. Aimed at
addressing challenges beyond Intel 18A, Intel began installation of the
industry's first on-site High-NA EUV tool in Oregon, one of the world's
leading semiconductor innovation and productization centers.
-- IFS won a key design award with a new high-performance computing
customer, its fourth external Intel 18A customer win in 2023. IFS has
taped out more than 75 ecosystem and customers test chips and has more
than 50 test chips in the pipeline across 2024 and 2025, 75% of which are
on Intel 18A. Intel also won three additional advanced packaging design
wins during the fourth quarter. Intel and UMC also announced a
collaboration on the development of a 12-nanometer process platform to
address high-growth markets, such as mobile, communication infrastructure
and networking.
-- In DCAI, momentum with Intel's 4th Gen Intel(R) Xeon(R) Scalable
processor remains strong, with more than 2.5 million units shipped since
its introduction in January 2023. In the fourth quarter, DCAI launched
its 5th Gen Intel(R) Xeon(R) processor, which is optimized for AI
workloads and provides up to 42% higher AI inference performance compared
to the industry-leading 4th Gen Intel Xeon processor. 5th Gen Intel Xeon
has reached general availability at Alibaba Cloud, is entering public and
private preview with several cloud service providers, and is on track to
ship with OEMs early next month.
-- In client computing, Intel ushered in the age of the AI PC with
Intel(R) Core(TM) Ultra processors. Built on Intel 4, the Intel Core
Ultra processor is Intel's most AI-capable and power-efficient client
processor with dedicated acceleration capabilities across the CPU, GPU
and NPU. Intel announced at CES 2024 the full Intel(R) Core(TM) 14th Gen
mobile and desktop processor lineup, as well as the new Intel(R) Core(TM)
mobile processor Series 1 family for performant mainstream thin-and-light
mobile systems.
-- In network and edge, OpenVINO(TM) adoption grew by 60% sequentially in
the fourth quarter as it became a core software layer for AI inference on
the edge, on the PC and in the data center. Additionally, AT&T and
Ericsson announced plans to lead the U.S. in commercial scale Open RAN
deployment in collaboration with Intel and others as it plans for 70% of
its wireless network traffic to flow across open-capable platforms by
late 2026. Cisco is working with Intel and others to create solutions
including Ethernet technologies, GPU-enabled infrastructure, and jointly
tested and validated reference architectures with a commitment to
advancing AI networking.
-- Mobileye announced that it was awarded a series of production design
wins by a major western automaker across the company's three key
platforms: Mobileye SuperVision(TM), Mobileye Chauffeur(TM) and Mobileye
Drive(TM). In addition, Intel Automotive announced the launch of
AI-enhanced software-defined vehicle SoCs, with Geely's Zeekr brand as
its first OEM partner, and Intel's agreement to acquire Silicon Mobility,
a fabless silicon and software company specializing in power management
SoCs focused on EVs, subject to necessary approvals. These announcements
build on shared IP across client and data center and on Intel's existing
SoC footprint of more than 50 million vehicles worldwide.
IFS Direct Connect Event
On Feb. 21, Intel will host its annual flagship foundry event, IFS Direct Connect, in San Jose, California. CEO Pat Gelsinger, Stuart Pann, senior vice president and general manager of Intel Foundry Services, and other leaders will deliver keynotes and news that showcase the breadth of Intel’s foundry ecosystem and define the next era of silicon design, development and manufacturing. For information about the event, please visit the event page.