Intel Corporation Q4 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Q4 revenue: $14 billion, down 8% sequentially and at the low end of guidance.
  • Full-year 2022 revenue: $63.1 billion versus original guidance of $76 billion (provided at Investor Day 2022).
  • EPS: $0.10 for Q4; full-year EPS $1.84.
  • Gross margin: 44% in Q4, impacted by factory underload charges.
  • Macro challenges continued with weakness in PC and server markets, elevated channel inventory, and global uncertainty (China, Europe, interest rates).

Market Conditions & Outlook

  • Intel expects macro weakness to persist through 1H23 with potential improvement in 2H23.
  • No full-year revenue guidance due to uncertainty; Q1 revenue forecast: $10.5–11.5 billion.
  • First-half 2023 expected to include the most significant inventory digestion in Intel’s dataset.
  • PC TAM (2023) expected at low end of 270–295 million units, down from pre-COVID highs.
  • PC usage remains strong; Intel believes long-term PC TAM will return near 300 million units.
  • Data center consumption TAM expected to decline Y/Y in 1H23 before returning to growth in 2H23.

Product & Operational Achievements

  • Process roadmap remains on or ahead of plan for “5 nodes in 4 years.” Intel 7 in high-volume manufacturing; Intel 4 ready for Meteor Lake ramp in 2H23.

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Operator: Thank you for standing by, and welcome to Intel Corporation's Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Mr. John Pitzer, Corporate Vice President of Investor Relations. Please go ahead, sir. John Pitzer: Thank you, Jonathan. By now, you should have received a copy of the Q4 earnings release and earnings presentation, both of which are available on our investor website, intc.com. For those joining us online today, the earnings presentation is also available in our webcast window. I am joined today by our CEO, Pat Gelsinger; and our CFO, David Zinsner. In a moment, we will hear brief comments from both followed by a Q&A session. Before we begin, please note that today's discussion does contain forward-looking statements based on the environment as we currently see it. As such, it does involve risks and uncertainties. Our press release provides more information on the specific risk factors that could cause actual results to differ materially. We've also provided both GAAP and non-GAAP financial measures this quarter, and we will be speaking to the non-GAAP financial measures when describing our consolidated results. The earnings release and earnings presentation include full GAAP and non-GAAP recon

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