The technology chipmaker has posted positive results for the fourth quarter.
The financial results for the fourth quarter of fiscal year 2015 have been posted by Intel Corporation. The chipmaker has posted positive results for the latest quarter. The revenue generated during three month period ending December 31, 2015 were $14.9 million, beating the revenue consensus of analysts which was of $14.8 billion. Even though the technology company has been witnessing declining sales in its PC unit but it has managed to outperform via its data center group.
Earnings per share reported by the largest chipmaker in the industry were at 75 cents, again beating the average consensus of stock experts, who predicted the EPS to be 63 cents per share. For the next quarter which will be the first quarter for fiscal year 2016, the company has predicted that the revenue that will be generated during the time will be $14.1 billion. On the other hand, the analysts predict that it will be as much as $13.88 billion.
Clearly, the investors at Wall Street were not quite impressed by the results posted by the chipmaker organization as the stock of the tech company decline by 5% and was trading below $31 during the after-hour trading. We know now that the company does not depend on the sales of its personal computers anymore as the PC sales are only going towards extinction now. In the fourth quarter, the sales fell by 1% on year over year basis.
Additionally, apart from its traditional chip making business, Intel Corp has moved towards building next level Skylake Chips. Last year in June, the technology organization acquired Altera for a price of $16 billion with the help of which it is building programming chips. Every device that the company makes from now onwards will have these programming chips in them now, including robotics as well as data centers.
In the last four years, the PC market has declined quite drastically so now it completely relies on its data centers for generating revenue. From the previous year’s fourth quarter, the revenue generated by the data centers has grown by as much as 5% and is now at $4.3 billion. However in the previous quarter, the data centers saw an increase of 12% to $41 billion worth sales. In the server market, the major acquisition that took place last year is playing an essential role in terms of strengthening the company in the specific market.
On the other hand, Intel Corp has also signed a partnership deal with Ascending Technologies, a drone manufacturing organization, in order to enter the drone market. Furthermore, Internet of Things is quite big with Intel too as the sales have increased by 10% to $581 million.
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