Intel Corporation Q2 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Q2 revenue was 19.7 billion dollars, up 20 percent year-over-year and 1.2 billion dollars above guidance.
  • EPS was 1.23 dollars, up 7 percent year-over-year and 0.13 dollars above guidance.
  • Data-centric businesses produced 10.2 billion dollars of revenue, up 34 percent year-over-year and representing 52 percent of total revenue.
  • PC-centric business revenue was 9.5 billion dollars, up 7 percent year-over-year driven by strong notebook demand and increased supply.
  • Operating cash flow was 11.2 billion dollars and free cash flow was 7.7 billion dollars, up 92 percent year-over-year.

Key Business Drivers and Performance

  • Cloud and communications demand soared due to COVID-19, lifting Data Center Group (DCG) revenue 43 percent year-over-year to 7.1 billion dollars.
  • Cloud revenue grew 47 percent, enterprise and government rose 34 percent, and communications service provider revenue increased 44 percent.
  • NAND revenue hit a record 1.7 billion dollars, up 76 percent year-over-year with 300 million dollars in operating income.
  • Mobileye revenue fell 27 percent due to global auto market weakness, shifting to a modest loss.
  • IoT Group declined sharply with revenue down 32 percent and operating income down 76 percent due to COVID-driven industrial and retail softness.

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Operator: Ladies and gentlemen, thank you for standing by and welcome to the Second Quarter 2020 Intel Corporation Earnings Conference Call. At this time, all participants’ lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your host today, Mr. Trey Campbell, Director of Investor Relations. Thank you. Please go ahead, sir. Trey Campbell: Thank you, operator, and welcome everyone to Intel’s second 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 Investors 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, Bob Swan and our CFO, George Davis. In a moment, we’ll hear 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, 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 me

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