Intel Corporation Q1 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Q1 revenue was $18.4 billion, slightly above guidance. This compares to Q1 2021 revenue of $19.7 billion, reflecting a decline driven primarily by Client Computing Group (CCG) softness and the Apple CPU/modem ramp-down.
  • Gross margin (non-GAAP) came in at 53%, 100 bps above guidance but down from 55% in Q1 2021.
  • EPS was $0.87, beating guidance by $0.07. This compares to non-GAAP EPS of $1.39 in Q1 2021.
  • Three business units delivered record quarterly revenue: Network & Edge (NEX), Mobileye, and Intel Foundry Services (IFS).
  • Company reaffirmed full-year revenue outlook of ~$76 billion despite PC softness and macro headwinds.

Business Segment Highlights

Client Computing Group (CCG)
  • Revenue: $9.3 billion, down 13% YoY, reflecting:
    • Apple CPU/modem business ramp-down.
    • Soft consumer/education demand and OEM inventory burn.
  • CPU ASPs grew over 25% YoY due to richer product mix and high-end demand.
  • Alder Lake shipments topped 15 million units; >250 designs in 2022 pipeline.
  • Raptor Lake sampling now; Meteor Lake targeted for 2023.
Data Center & AI (DCAI)
  • Revenue: $6 billion, up 22% YoY.
  • Operating profit flat YoY due to higher 10nm mix and startup costs.

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Operator: Good day, ladies and gentlemen, thank you for standing by, and welcome to Intel Corporation's First Quarter 2022 Earnings Conference Call. [Operator Instructions] After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised today's conference is being recorded. I would now like to turn the conference over to your speaker host, Tony Balow, Vice President of Investor Relations. Please go ahead. Tony Balow: Thank you, operator. Welcome to Intel's first quarter earnings conference call. By now you should have received a copy of our earnings release and the earnings presentation. If you've not received both documents, they're available on our investor website, intc.com. The earnings presentation is also available in the webcast window for those joining us online. I'm joined today by our CEO, Pat Gelsinger; and our CFO, Dave Zinsner. In a moment, we'll have brief remarks from both of them, followed by Q&A. Before we begin, let me remind everyone that today's discussion contains forward-looking statements based on the environment as we currently see it, and as such, it does include risks and uncertainties. Please refer to our press release for more information on the specific risk factors that could cause actual results to differ materially. A brief reminder that this quarter, we have provided both GAAP and non-GAAP financial measures. Today, we'll be speaking to the non-GAAP financial measures when describing our

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