Intel(INTC) 2023Q3 Earnings Summary
Bullish Points:
1. Intel 4 technology high-volume production began in Ireland fab, marking the first use of EUV technology in high-volume manufacturing in Europe.
2. Intel Core Ultra processors with integrated neural processing unit announced, expected to launch in Q4 2023.
3. Commercial agreement with Tower for foundry services and manufacturing capacity announced.
4. Intel received a $600 million grant from the State of Ohio to support the construction of two chip factories.
5. Mobileye Q3 2023 revenue: $530 million, up $80 million from Q3 2022.
6. IFS Q3 2023 revenue: $311 million, up $233 million from Q3 2022.
7. Non-GAAP earnings per share attributable to Intel for the three months ended Sep 30, 2023 is $0.41, higher than $0.37 for the same period in 2022.
Bearish Points:
1. Total revenue of $14.2 billion, down 8% from Q3 2022.
2. CCG revenue decreased 3% due to lower desktop volume and lower notebook ASPs.
3. DCAI revenue decreased 10% due to lower server volume.
4. NEX revenue decreased 32%.
5. Gross margin down 0.1 ppt from Q3 2022, primarily due to lower revenue, higher unit cost, and a decrease in period charges.
6. Diluted EPS attributable to Intel down $0.18 or 72% from Q3 2022, mainly due to a lower tax benefit and reduced operating expenses.
7. Operating cash flow down $0.9B or 12% from Q3 2022, driven by a net operating loss and changes in working capital.
8. Total net revenue for the nine months ended Sep 30, 2023, was $38,822 million, compared to $49,012 million for the same period in 2022.
9. Total operating income (loss) for the nine months ended Sep 30, 2023, was a loss of $2,492 million, compared to an income of $3,466 million for the same period in 2022.
10. Net income (loss) attributable to Intel for the nine months ended Sep 30, 2023, was a loss of $980 million, compared to an income of $8,678 million for the same period in 2022.
In summary, Intel has made some progress in technology development and received support for the construction of new chip factories. However, the company's financial performance has been negatively impacted by lower revenues, decreased margins, and increased expenses. It is essential to consider both the positive and negative aspects of the company's performance to make an informed decision.
For more information, you can read the original text of Intel(INTC)'s financial report.
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