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 industy updates delivered to you every week!

The Case for an Edge-Driven Future for Supercomputing

September 24, 2021

“Exascale only becomes valuable when it’s creating and using data that we care about,” said Pete Beckman, co-director of the Northwestern-Argonne Institute of Science and Engineering (NAISE), at the most recent HPC Read more…

Three Universities Team for NSF-Funded ‘ACES’ Reconfigurable Supercomputer Prototype

September 23, 2021

As Moore’s law slows, HPC developers are increasingly looking for speed gains in specialized code and specialized hardware – but this specialization, in turn, can make testing and deploying code trickier than ever. Now, researchers from Texas A&M University, the University of Illinois at Urbana... Read more…

Qubit Stream: Monte Carlo Advance, Infosys Joins the Fray, D-Wave Meeting Plans, and More

September 23, 2021

It seems the stream of quantum computing reports never ceases. This week – IonQ and Goldman Sachs tackle Monte Carlo on quantum hardware, Cambridge Quantum pushes chemistry calculations forward, D-Wave prepares for its Read more…

Asetek Announces It Is Exiting HPC to Protect Future Profitability

September 22, 2021

Liquid cooling specialist Asetek, well-known in HPC circles for its direct-to-chip cooling technology that is inside some of the fastest supercomputers in the world, announced today that it is exiting the HPC space amid multiple supply chain issues related to the pandemic. Although pandemic supply chain... Read more…

TACC Supercomputer Delves Into Protein Interactions

September 22, 2021

Adenosine triphosphate (ATP) is a compound used to funnel energy from mitochondria to other parts of the cell, enabling energy-driven functions like muscle contractions. For ATP to flow, though, the interaction between the hexokinase-II (HKII) enzyme and the proteins found in a specific channel on the mitochondria’s outer membrane. Now, simulations conducted on supercomputers at the Texas Advanced Computing Center (TACC) have simulated... Read more…

AWS Solution Channel

Introducing AWS ParallelCluster 3

Running HPC workloads, like computational fluid dynamics (CFD), molecular dynamics, or weather forecasting typically involves a lot of moving parts. You need a hundreds or thousands of compute cores, a job scheduler for keeping them fed, a shared file system that’s tuned for throughput or IOPS (or both), loads of libraries, a fast network, and a head node to make sense of all this. Read more…

The Latest MLPerf Inference Results: Nvidia GPUs Hold Sway but Here Come CPUs and Intel

September 22, 2021

The latest round of MLPerf inference benchmark (v 1.1) results was released today and Nvidia again dominated, sweeping the top spots in the closed (apples-to-apples) datacenter and edge categories. Perhaps more interesti Read more…

The Case for an Edge-Driven Future for Supercomputing

September 24, 2021

“Exascale only becomes valuable when it’s creating and using data that we care about,” said Pete Beckman, co-director of the Northwestern-Argonne Institut Read more…

Three Universities Team for NSF-Funded ‘ACES’ Reconfigurable Supercomputer Prototype

September 23, 2021

As Moore’s law slows, HPC developers are increasingly looking for speed gains in specialized code and specialized hardware – but this specialization, in turn, can make testing and deploying code trickier than ever. Now, researchers from Texas A&M University, the University of Illinois at Urbana... Read more…

Qubit Stream: Monte Carlo Advance, Infosys Joins the Fray, D-Wave Meeting Plans, and More

September 23, 2021

It seems the stream of quantum computing reports never ceases. This week – IonQ and Goldman Sachs tackle Monte Carlo on quantum hardware, Cambridge Quantum pu Read more…

Asetek Announces It Is Exiting HPC to Protect Future Profitability

September 22, 2021

Liquid cooling specialist Asetek, well-known in HPC circles for its direct-to-chip cooling technology that is inside some of the fastest supercomputers in the world, announced today that it is exiting the HPC space amid multiple supply chain issues related to the pandemic. Although pandemic supply chain... Read more…

TACC Supercomputer Delves Into Protein Interactions

September 22, 2021

Adenosine triphosphate (ATP) is a compound used to funnel energy from mitochondria to other parts of the cell, enabling energy-driven functions like muscle contractions. For ATP to flow, though, the interaction between the hexokinase-II (HKII) enzyme and the proteins found in a specific channel on the mitochondria’s outer membrane. Now, simulations conducted on supercomputers at the Texas Advanced Computing Center (TACC) have simulated... Read more…

The Latest MLPerf Inference Results: Nvidia GPUs Hold Sway but Here Come CPUs and Intel

September 22, 2021

The latest round of MLPerf inference benchmark (v 1.1) results was released today and Nvidia again dominated, sweeping the top spots in the closed (apples-to-ap Read more…

Why HPC Storage Matters More Now Than Ever: Analyst Q&A

September 17, 2021

With soaring data volumes and insatiable computing driving nearly every facet of economic, social and scientific progress, data storage is seizing the spotlight. Hyperion Research analyst and noted storage expert Mark Nossokoff looks at key storage trends in the context of the evolving HPC (and AI) landscape... Read more…

GigaIO Gets $14.7M in Series B Funding to Expand Its Composable Fabric Technology to Customers

September 16, 2021

Just before the COVID-19 pandemic began in March 2020, GigaIO introduced its Universal Composable Fabric technology, which allows enterprises to bring together Read more…

Ahead of ‘Dojo,’ Tesla Reveals Its Massive Precursor Supercomputer

June 22, 2021

In spring 2019, Tesla made cryptic reference to a project called Dojo, a “super-powerful training computer” for video data processing. Then, in summer 2020, Tesla CEO Elon Musk tweeted: “Tesla is developing a [neural network] training computer called Dojo to process truly vast amounts of video data. It’s a beast! … A truly useful exaflop at de facto FP32.” Read more…

Enter Dojo: Tesla Reveals Design for Modular Supercomputer & D1 Chip

August 20, 2021

Two months ago, Tesla revealed a massive GPU cluster that it said was “roughly the number five supercomputer in the world,” and which was just a precursor to Tesla’s real supercomputing moonshot: the long-rumored, little-detailed Dojo system. “We’ve been scaling our neural network training compute dramatically over the last few years,” said Milan Kovac, Tesla’s director of autopilot engineering. Read more…

Esperanto, Silicon in Hand, Champions the Efficiency of Its 1,092-Core RISC-V Chip

August 27, 2021

Esperanto Technologies made waves last December when it announced ET-SoC-1, a new RISC-V-based chip aimed at machine learning that packed nearly 1,100 cores onto a package small enough to fit six times over on a single PCIe card. Now, Esperanto is back, silicon in-hand and taking aim... Read more…

CentOS Replacement Rocky Linux Is Now in GA and Under Independent Control

June 21, 2021

The Rocky Enterprise Software Foundation (RESF) is announcing the general availability of Rocky Linux, release 8.4, designed as a drop-in replacement for the soon-to-be discontinued CentOS. The GA release is launching six-and-a-half months after Red Hat deprecated its support for the widely popular, free CentOS server operating system. The Rocky Linux development effort... Read more…

Intel Completes LLVM Adoption; Will End Updates to Classic C/C++ Compilers in Future

August 10, 2021

Intel reported in a blog this week that its adoption of the open source LLVM architecture for Intel’s C/C++ compiler is complete. The transition is part of In Read more…

Hot Chips: Here Come the DPUs and IPUs from Arm, Nvidia and Intel

August 25, 2021

The emergence of data processing units (DPU) and infrastructure processing units (IPU) as potentially important pieces in cloud and datacenter architectures was Read more…

AMD-Xilinx Deal Gains UK, EU Approvals — China’s Decision Still Pending

July 1, 2021

AMD’s planned acquisition of FPGA maker Xilinx is now in the hands of Chinese regulators after needed antitrust approvals for the $35 billion deal were receiv Read more…

Google Launches TPU v4 AI Chips

May 20, 2021

Google CEO Sundar Pichai spoke for only one minute and 42 seconds about the company’s latest TPU v4 Tensor Processing Units during his keynote at the Google I Read more…

Leading Solution Providers

Contributors

HPE Wins $2B GreenLake HPC-as-a-Service Deal with NSA

September 1, 2021

In the heated, oft-contentious, government IT space, HPE has won a massive $2 billion contract to provide HPC and AI services to the United States’ National Security Agency (NSA). Following on the heels of the now-canceled $10 billion JEDI contract (reissued as JWCC) and a $10 billion... Read more…

10nm, 7nm, 5nm…. Should the Chip Nanometer Metric Be Replaced?

June 1, 2020

The biggest cool factor in server chips is the nanometer. AMD beating Intel to a CPU built on a 7nm process node* – with 5nm and 3nm on the way – has been i Read more…

Julia Update: Adoption Keeps Climbing; Is It a Python Challenger?

January 13, 2021

The rapid adoption of Julia, the open source, high level programing language with roots at MIT, shows no sign of slowing according to data from Julialang.org. I Read more…

Quantum Roundup: IBM, Rigetti, Phasecraft, Oxford QC, China, and More

July 13, 2021

IBM yesterday announced a proof for a quantum ML algorithm. A week ago, it unveiled a new topology for its quantum processors. Last Friday, the Technical Univer Read more…

Intel Launches 10nm ‘Ice Lake’ Datacenter CPU with Up to 40 Cores

April 6, 2021

The wait is over. Today Intel officially launched its 10nm datacenter CPU, the third-generation Intel Xeon Scalable processor, codenamed Ice Lake. With up to 40 Read more…

Frontier to Meet 20MW Exascale Power Target Set by DARPA in 2008

July 14, 2021

After more than a decade of planning, the United States’ first exascale computer, Frontier, is set to arrive at Oak Ridge National Laboratory (ORNL) later this year. Crossing this “1,000x” horizon required overcoming four major challenges: power demand, reliability, extreme parallelism and data movement. Read more…

Intel Unveils New Node Names; Sapphire Rapids Is Now an ‘Intel 7’ CPU

July 27, 2021

What's a preeminent chip company to do when its process node technology lags the competition by (roughly) one generation, but outmoded naming conventions make it seem like it's two nodes behind? For Intel, the response was to change how it refers to its nodes with the aim of better reflecting its positioning within the leadership semiconductor manufacturing space. Intel revealed its new node nomenclature, and... Read more…

Top500: Fugaku Still on Top; Perlmutter Debuts at #5

June 28, 2021

The 57th Top500, revealed today from the ISC 2021 digital event, showcases many of the same systems as the previous edition, with Fugaku holding its significant lead and only one new entrant in the top 10 cohort: the Perlmutter system at the DOE Lawrence Berkeley National Laboratory enters the list at number five with 65.69 Linpack petaflops. Perlmutter is the largest... Read more…

  • arrow
  • Click Here for More Headlines
  • arrow
HPCwire