Intel Reports Second-Quarter 2021 Financial Results

July 23, 2021

SANTA CLARA, Calif., July 23, 2021 — Intel Corporation reported second-quarter 2021 financial results.

“There’s never been a more exciting time to be in the semiconductor industry. The digitization of everything continues to accelerate, creating a vast growth opportunity for us and our customers across core and emerging business areas. With our scale and renewed focus on both innovation and execution, we are uniquely positioned to capitalize on this opportunity, which I believe is merely the beginning of what will be a decade of sustained growth across the industry,” said Pat Gelsinger, Intel CEO. “Our second-quarter results show that our momentum is building, our execution is improving, and customers continue to choose us for leadership products.”

Q2 2021 Financial Highlights

  • Second-quarter GAAP revenue of $19.6 billion, flat year over year (YoY), and non-GAAP revenue of $18.5 billion, up 2% YoY, which exceeded April guidance by $700 million.
  • Second-quarter GAAP earnings-per-share (EPS) was $1.24; non-GAAP EPS was $1.28, which exceeded April guidance by $0.23.
  • Exceeded Q2 guidance for revenue, EPS, and gross margin; record Q2 revenue in PC and Mobileye businesses.
  • Raising full-year 2021 guidance. Now expecting GAAP revenue of $77.6 billion and non-GAAP revenue of $73.5 billion; GAAP EPS of $4.09 and non-GAAP EPS of $4.80.1
  GAAP   Non-GAAP
  Q2 2021 Q2 2020 vs. Q2 2020   Q2 2021 Q2 2020 vs. Q2 2020
Revenue ($B) $19.6 $19.7 flat   $18.5 $18.2 up 2%
Gross Margin 57.1% 53.3% up 3.8 ppt   59.2% 56.3% up 2.9 ppt
R&D and MG&A ($B) $5.3 $4.8 up 11%   $5.1 $4.6 up 11%
Operating Margin 28.3% 28.9% down 0.6 ppt   31.6% 31.0% up 0.6 ppt
Tax Rate 11.9% 14.0% down 2.1 ppt   11.9% 14.1% down 2.3 ppt
Net Income ($B) $5.1 $5.1 down 1%   $5.2 $4.9 up 6%
Earnings Per Share $1.24 $1.19 up 4%   $1.28 $1.14 up 12%

In the second quarter, the company generated $8.7 billion in cash from operations and paid dividends of $1.4 billion.

Business Unit Summary

Key Business Unit Revenue and Trends   Q2 2021   vs. Q2 2020
CCG   $10.1 billion   up 6%
DCG   $6.5 billion   down 9%
Internet of Things          
IOTG   $984 million   up 47%
Mobileye   $327 million   up 124%
NSG   $1.1 billion   down 34%
PSG   $486 million   down 3%

 

Second-quarter revenue exceeded April guidance led by continued strength in Intel’s Client Computing Group (CCG) and strong recovery in both Intel’s Internet of Things Group (IOTG) and the Enterprise portion of its Data Center Group (DCG).

The PC and Mobileye businesses both achieved record Q2 revenue. In the second quarter, PC platform volumes were up 33 percent YoY and Mobileye closed 10 additional design wins for more than 16 million total lifetime units.

Business Highlights

▪       Announced a $3.5 billion investment to equip Intel’s New Mexico operations for the manufacturing of advanced semiconductor packaging technologies, including Foveros.

▪       Launched 12 new processors for client, including 11th Gen Intel Core with Intel Iris Xe graphics and Intel Xeon W-11000 series processors with more than 300 designs expected this year.

▪       Announced partnership with Microsoft including Intel Bridge Technology to deliver better mobile experiences on Windows-powered PCs.

▪       Leading cloud service providers, including Alibaba, Baidu, Microsoft, and Oracle are offering services based on the latest 3rd Gen Intel Xeon Scalable (“Ice Lake”) processors.

▪       Unveiled the Intel Network Platform and expanded networking leadership product portfolio with new FPGA, software, and Ethernet solutions.

▪       Announced partnership with Ericsson to expand cloud radio access network to increase 5G performance.

▪       Mobileye and ZF were selected by Toyota Motor Corp to develop advanced driver assistance systems.

▪       Announced Mobileye as the only company holding an autonomous vehicle testing permit in New York.

▪       Announced new organizational changes and welcomed renowned technologists to strengthen execution and innovation in critical business areas.

As part of its IDM 2.0 strategy, Intel is accelerating its annual cadence of innovation with new advancements in semiconductor process and packaging. Join the public webcast at newsroom.intel.com at 2 p.m. PDT on Monday, July 26, for more information on Intel’s process and packaging roadmaps.

Additional information regarding Intel’s results can be found in the Q2’21 Earnings Presentation available at:

www.intc.com.

Business Outlook

Intel’s guidance for the third quarter and full year includes both GAAP and non-GAAP estimates. Our Non-GAAP measures exclude the NAND memory business, which is subject to a previously-announced pending sale, as well as certain other items. Reconciliations between GAAP and non-GAAP financial measures are included below. Intel’s guidance includes a one-time tax benefit to EPS of approximately $0.10 in Q3.

Q3 2021   GAAP   Non-GAAP
    Approximately   Approximately
Revenue   $19.1 billion   $18.2 billion
Gross Margin   53%   55%
Tax rate   4%   4%
Earnings per share   $1.08   $1.10

 

Full-Year 2021   GAAP   Non-GAAP
    Approximately   Approximately
Revenue   $77.6 billion   $73.5 billion
Gross Margin   54.2%   56.5%
Tax rate   16%   11%
Earnings per share   $4.09   $4.80
Full-year capital spending   $19.0-20.0 billion   $19.0-20.0 billion^
Free cash flow   N/A   $11.0 billion

Actual results may differ materially from Intel’s Business Outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below.

Intel Corporation

Consolidated Condensed Statements of Income and Other Information

    Three Months Ended   Six Months Ended
(In Millions, Except Per Share Amounts; unaudited)   Jun 26, 2021   Jun 27, 2020   Jun 26, 2021   Jun 27, 2020
Net revenue   $ 19,631      $ 19,728      $ 39,304      $ 39,556   
Cost of sales   8,425     9,221     17,244     17,033  
Gross margin   11,206      10,507      22,060      22,523   
Research and development   3,715     3,354     7,338     6,629  
Marketing, general and administrative   1,599     1,447     2,927     2,988  
Restructuring and other charges   346     9     2,555     171  
Operating expenses   5,660      4,810      12,820      9,788   
Operating income   5,546      5,697      9,240      12,735   
Gains (losses) on equity investments, net   295     267     663     156  
Interest and other, net   (96)     (29)     (252)     (342)  
Income before taxes   5,745      5,935      9,651      12,549   
Provision for taxes   684     830     1,229     1,783  
Net income   $ 5,061      $ 5,105      $ 8,422      $ 10,766   
                 
Earnings per share—basic   $ 1.25      $ 1.20      $ 2.08      $ 2.53   
Earnings per share—diluted   $ 1.24      $ 1.19      $ 2.06      $ 2.50   
                 
Weighted average shares of common stock outstanding:                
Basic   4,049      4,246      4,053      4,256   
Diluted   4,084      4,284      4,090      4,298   

 

    Three Months Ended
(In Millions)   Jun 26, 2021   Jun 27, 2020
Earnings per share of common stock information:        
Weighted average shares of common stock outstanding—basic   4,049      4,246   
Dilutive effect of employee equity incentive plans   35     38  
Weighted average shares of common stock outstanding—diluted   4,084      4,284   
         
Stock buyback:        
Shares repurchased        
Cumulative shares repurchased (in billions)   5.8     5.5  
Remaining dollars authorized for buyback (in billions)   $ 7.2     $ 19.7  
         
Other information:        
Employees (in thousands)   113.7     110.8  

 

 

Intel Corporation

Consolidated Condensed Balance Sheets

(In Millions)   Jun 26, 2021   Dec 26, 2020
Assets   (unaudited)    
Current assets:        
Cash and cash equivalents   $ 4,746     $ 5,865  
Short-term investments   3,014     2,292  
Trading assets   17,097     15,738  
Accounts receivable   7,460     6,782  
Inventories        
Raw materials   1,010     908  
Work in process   5,968     5,693  
Finished goods   1,839     1,826  
    8,817      8,427   
Assets held for sale   5,817     5,400  
Other current assets   2,421     2,745  
Total current assets   49,372      47,249   
         
Property, plant and equipment, net   58,166      56,584   
Equity investments   5,655      5,152   
Other long-term investments   1,262      2,192   
Goodwill   26,768      26,971   
Identified intangible assets, net   8,018      9,026   
Other long-term assets   5,356      5,917   
Total assets   $ 154,597      $ 153,091   
         
Liabilities        
Current liabilities        
Short-term debt   $ 3,695     $ 2,504  
Accounts payable   5,917     5,581  
Accrued compensation and benefits   3,176     3,999  
Other accrued liabilities   12,048     12,670  
Total current liabilities   24,836      24,754   
Debt   31,714      33,897   
Contract liabilities   68      1,367   
Income taxes payable   4,172      4,578   
Deferred income taxes   3,271      3,843   
Other long-term liabilities   5,329      3,614   
Stockholders’ equity        
Common stock and capital in excess of par value, 4,057 issued and outstanding (4,062 issued and outstanding as of December 26, 2020)   26,655     25,556  
Accumulated other comprehensive income (loss)   (1,095)     (751)  
Retained earnings   59,647     56,233  
Total stockholders’ equity   85,207      81,038   
Total liabilities and stockholders’ equity   $ 154,597      $ 153,091   

 

 

Intel Corporation

Consolidated Condensed Statements of Cash Flows

    Six Months Ended
(In Millions; unaudited)   Jun 26, 2021   Jun 27, 2020
         
Cash and cash equivalents, beginning of period   $ 5,865      $ 4,194   
Cash flows provided by (used for) operating activities:        
Net income   8,422     10,766  
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation   4,862     5,248  
Share-based compensation   1,044     941  
Restructuring and other charges   2,555     171  
Amortization of intangibles   897     865  
(Gains) losses on equity investments, net   (555)     (92)  
Changes in assets and liabilities:        
Accounts receivable   (678)     224  
Inventories   (126)     (271)  
Accounts payable   425     208  
Accrued compensation and benefits   (836)     (1,025)  
Prepaid supply agreements   (1,571)     (161)  
Income taxes   114     1,203  
Other assets and liabilities   (259)     (762)  
Total adjustments   5,872     6,549  
Net cash provided by operating activities   14,294      17,315   
Cash flows provided by (used for) investing activities:        
Additions to property, plant and equipment   (7,574)     (6,676)  
Additions to held for sale NAND property, plant and equipment   (682)      
Purchases of available-for-sale debt investments   (2,000)     (4,558)  
Maturities and sales of available-for-sale debt investments   2,126     1,303  
Purchases of trading assets   (14,637)     (11,429)  
Maturities and sales of trading assets   12,936     7,430  
Other investing   380     (416)  
Net cash used for investing activities   (9,451)     (14,346)  
Cash flows provided by (used for) financing activities:        
Issuance of long-term debt, net of issuance costs       10,247  
Repayment of debt and debt conversion   (500)     (2,775)  
Proceeds from sales of common stock through employee equity incentive plans   589     512  
Repurchase of common stock   (2,415)     (4,229)  
Payment of dividends to stockholders   (2,821)     (2,811)  
Other financing   (815)     629  
Net cash provided by (used for) financing activities   (5,962)     1,573   
Net increase (decrease) in cash and cash equivalents   (1,119)     4,542   
Cash and cash equivalents, end of period   $ 4,746      $ 8,736   

 

About Intel

Intel (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore’s Law, we continuously work to advance the design and manufacturing of semiconductors to help address our customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash the potential of data to transform business and society for the better. To learn more about Intel’s innovations, go to intel.com.

Click here for the full release.


Source: Intel

 

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industry updates delivered to you every week!

Nvidia’s New Blackwell GPU Can Train AI Models with Trillions of Parameters

March 18, 2024

Nvidia's latest and fastest GPU, code-named Blackwell, is here and will underpin the company's AI plans this year. The chip offers performance improvements from its predecessors, including the red-hot H100 and A100 GPUs. Read more…

Nvidia Showcases Quantum Cloud, Expanding Quantum Portfolio at GTC24

March 18, 2024

Nvidia’s barrage of quantum news at GTC24 this week includes new products, signature collaborations, and a new Nvidia Quantum Cloud for quantum developers. While Nvidia may not spring to mind when thinking of the quant Read more…

2024 Winter Classic: Meet the HPE Mentors

March 18, 2024

The latest installment of the 2024 Winter Classic Studio Update Show features our interview with the HPE mentor team who introduced our student teams to the joys (and potential sorrows) of the HPL (LINPACK) and accompany Read more…

Houston We Have a Solution: Addressing the HPC and Tech Talent Gap

March 15, 2024

Generations of Houstonian teachers, counselors, and parents have either worked in the aerospace industry or know people who do - the prospect of entering the field was normalized for boys in 1969 when the Apollo 11 missi Read more…

Apple Buys DarwinAI Deepening its AI Push According to Report

March 14, 2024

Apple has purchased Canadian AI startup DarwinAI according to a Bloomberg report today. Apparently the deal was done early this year but still hasn’t been publicly announced according to the report. Apple is preparing Read more…

Survey of Rapid Training Methods for Neural Networks

March 14, 2024

Artificial neural networks are computing systems with interconnected layers that process and learn from data. During training, neural networks utilize optimization algorithms to iteratively refine their parameters until Read more…

Nvidia’s New Blackwell GPU Can Train AI Models with Trillions of Parameters

March 18, 2024

Nvidia's latest and fastest GPU, code-named Blackwell, is here and will underpin the company's AI plans this year. The chip offers performance improvements from Read more…

Nvidia Showcases Quantum Cloud, Expanding Quantum Portfolio at GTC24

March 18, 2024

Nvidia’s barrage of quantum news at GTC24 this week includes new products, signature collaborations, and a new Nvidia Quantum Cloud for quantum developers. Wh Read more…

Houston We Have a Solution: Addressing the HPC and Tech Talent Gap

March 15, 2024

Generations of Houstonian teachers, counselors, and parents have either worked in the aerospace industry or know people who do - the prospect of entering the fi Read more…

Survey of Rapid Training Methods for Neural Networks

March 14, 2024

Artificial neural networks are computing systems with interconnected layers that process and learn from data. During training, neural networks utilize optimizat Read more…

PASQAL Issues Roadmap to 10,000 Qubits in 2026 and Fault Tolerance in 2028

March 13, 2024

Paris-based PASQAL, a developer of neutral atom-based quantum computers, yesterday issued a roadmap for delivering systems with 10,000 physical qubits in 2026 a Read more…

India Is an AI Powerhouse Waiting to Happen, but Challenges Await

March 12, 2024

The Indian government is pushing full speed ahead to make the country an attractive technology base, especially in the hot fields of AI and semiconductors, but Read more…

Charles Tahan Exits National Quantum Coordination Office

March 12, 2024

(March 1, 2024) My first official day at the White House Office of Science and Technology Policy (OSTP) was June 15, 2020, during the depths of the COVID-19 loc Read more…

AI Bias In the Spotlight On International Women’s Day

March 11, 2024

What impact does AI bias have on women and girls? What can people do to increase female participation in the AI field? These are some of the questions the tech Read more…

Alibaba Shuts Down its Quantum Computing Effort

November 30, 2023

In case you missed it, China’s e-commerce giant Alibaba has shut down its quantum computing research effort. It’s not entirely clear what drove the change. Read more…

Nvidia H100: Are 550,000 GPUs Enough for This Year?

August 17, 2023

The GPU Squeeze continues to place a premium on Nvidia H100 GPUs. In a recent Financial Times article, Nvidia reports that it expects to ship 550,000 of its lat Read more…

Analyst Panel Says Take the Quantum Computing Plunge Now…

November 27, 2023

Should you start exploring quantum computing? Yes, said a panel of analysts convened at Tabor Communications HPC and AI on Wall Street conference earlier this y Read more…

DoD Takes a Long View of Quantum Computing

December 19, 2023

Given the large sums tied to expensive weapon systems – think $100-million-plus per F-35 fighter – it’s easy to forget the U.S. Department of Defense is a Read more…

Shutterstock 1285747942

AMD’s Horsepower-packed MI300X GPU Beats Nvidia’s Upcoming H200

December 7, 2023

AMD and Nvidia are locked in an AI performance battle – much like the gaming GPU performance clash the companies have waged for decades. AMD has claimed it Read more…

Synopsys Eats Ansys: Does HPC Get Indigestion?

February 8, 2024

Recently, it was announced that Synopsys is buying HPC tool developer Ansys. Started in Pittsburgh, Pa., in 1970 as Swanson Analysis Systems, Inc. (SASI) by John Swanson (and eventually renamed), Ansys serves the CAE (Computer Aided Engineering)/multiphysics engineering simulation market. Read more…

Intel’s Server and PC Chip Development Will Blur After 2025

January 15, 2024

Intel's dealing with much more than chip rivals breathing down its neck; it is simultaneously integrating a bevy of new technologies such as chiplets, artificia Read more…

Baidu Exits Quantum, Closely Following Alibaba’s Earlier Move

January 5, 2024

Reuters reported this week that Baidu, China’s giant e-commerce and services provider, is exiting the quantum computing development arena. Reuters reported � Read more…

Leading Solution Providers

Contributors

Choosing the Right GPU for LLM Inference and Training

December 11, 2023

Accelerating the training and inference processes of deep learning models is crucial for unleashing their true potential and NVIDIA GPUs have emerged as a game- Read more…

Training of 1-Trillion Parameter Scientific AI Begins

November 13, 2023

A US national lab has started training a massive AI brain that could ultimately become the must-have computing resource for scientific researchers. Argonne N Read more…

Shutterstock 1179408610

Google Addresses the Mysteries of Its Hypercomputer 

December 28, 2023

When Google launched its Hypercomputer earlier this month (December 2023), the first reaction was, "Say what?" It turns out that the Hypercomputer is Google's t Read more…

Comparing NVIDIA A100 and NVIDIA L40S: Which GPU is Ideal for AI and Graphics-Intensive Workloads?

October 30, 2023

With long lead times for the NVIDIA H100 and A100 GPUs, many organizations are looking at the new NVIDIA L40S GPU, which it’s a new GPU optimized for AI and g Read more…

AMD MI3000A

How AMD May Get Across the CUDA Moat

October 5, 2023

When discussing GenAI, the term "GPU" almost always enters the conversation and the topic often moves toward performance and access. Interestingly, the word "GPU" is assumed to mean "Nvidia" products. (As an aside, the popular Nvidia hardware used in GenAI are not technically... Read more…

Shutterstock 1606064203

Meta’s Zuckerberg Puts Its AI Future in the Hands of 600,000 GPUs

January 25, 2024

In under two minutes, Meta's CEO, Mark Zuckerberg, laid out the company's AI plans, which included a plan to build an artificial intelligence system with the eq Read more…

Google Introduces ‘Hypercomputer’ to Its AI Infrastructure

December 11, 2023

Google ran out of monikers to describe its new AI system released on December 7. Supercomputer perhaps wasn't an apt description, so it settled on Hypercomputer Read more…

China Is All In on a RISC-V Future

January 8, 2024

The state of RISC-V in China was discussed in a recent report released by the Jamestown Foundation, a Washington, D.C.-based think tank. The report, entitled "E Read more…

  • arrow
  • Click Here for More Headlines
  • arrow
HPCwire