Intel's first-quarter net profit fell 41% year-on-year to $3.4 billion

Beijing time, April 23, Intel Corporation (NASDAQ: INTC) today released its first quarter financial report for fiscal year 2021 ending March 27. The financial report shows that according to US Generally Accepted Accounting Principles (GAAP), Intel's revenue in the first fiscal quarter was US$19.7 billion, a decrease of 1% from US$19.8 billion in the same period last year; net profit was US$3.4 billion, a decrease of 41% from US$5.7 billion in the same period last year.

Intel's first-quarter adjusted revenue and earnings per share both beat analysts' consensus and independent expectations, but its stock price still fell more than 1% in after-hours trading.

Stock price performance:

Intel shares fell 1.23% after hours

Intel opened at $63.35 on the Nasdaq exchange on Thursday. As of Thursday's close, Intel's stock price fell $1.13 to $62.57, a drop of 1.77%. As of 16:45 Eastern Time on Thursday (4:45 Beijing Time on Friday), Intel's stock price fell $0.77 to $61.80 in after-hours trading, a drop of 1.23%. In the past 52 weeks, Intel's stock price has been as high as $68.49 and as low as $43.61.

First quarter results highlights:

-- Announced a new IDM (Integrated Device Manufacturer) 2.0 strategy, including a $20 billion capacity expansion plan and new chip foundry services in Arizona, USA;

-- Revenue was $19.7 billion, down 1% from $19.8 billion in the same period last year; Non-GAAP revenue was $18.6 billion, flat compared to $18.6 billion in the same period last year;

- Gross profit margin was 55.2%, down 5.4 percentage points from 60.6% in the same period last year; based on non-U.S. GAAP, gross profit margin was 58.4%, down 6.1 percentage points from 64.5% in the same period last year;

-- Research and development and marketing, general and administrative expenses (MG&A) were $5.0 billion, up 3% from $4.8 billion in the same period last year; Research and development and marketing, general and administrative expenses were $4.8 billion, up 2% from $4.6 billion in the same period last year;

-- The operating profit margin was 18.8%, down 16.7 percentage points from 35.5% in the same period last year; based on non-U.S. GAAP, the operating profit margin was 32.8%, down 6.7 percentage points from 39.5% in the same period last year;

-- Net profit was $3.4 billion, down 41% from $5.7 billion in the same period last year; non-GAAP net profit was $5.7 billion, down 6% from $6.1 billion in the same period last year;

-- Earnings per share were $0.82, down 37% from $1.31 in the same period last year; non-GAAP earnings per share were $1.39, down 1% from $1.41 in the same period last year;

--The tax rate was 14.0%, down 0.4 percentage points from 14.4% in the same period last year; based on non-U.S. GAAP, the tax rate was 13.7%, the same as 13.7% in the same period last year;

--In the first fiscal quarter, Intel generated $5.5 billion in operating cash flow, distributed $1.4 billion in dividends, and invested $2.3 billion in stock repurchases.

Department performance:

- Client Computing Group (CCG) revenue for the first quarter was $10.6 billion, up 8% year-over-year;

——Data Center Group (DCG) revenue in the first quarter was $5.6 billion, a year-on-year decrease of 20%;

——The Internet of Things Business Group (IOTG) had revenue of US$914 million in the first quarter, a year-on-year increase of 4%;

Mobileye, the autonomous driving technology division, had revenue of $377 million in the first quarter, up 48% year-on-year.

Storage Business Group (NSG) revenue for the first quarter was $1.1 billion, down 17% year-over-year.

——The Programmable Solutions Group (PSG) had revenue of $486 million in the first quarter, down 6% year-on-year.

Outlook:

Second quarter outlook:

-- Revenue of approximately $18.9 billion, or approximately $17.8 billion on a non-GAAP basis;

-- Operating profit margin was approximately 55%, and approximately 57% on a non-GAAP basis;

--Tax rate of approximately 13%, and approximately 13% on a non-GAAP basis;

-- Earnings per share of approximately $1.05, or approximately $1.05 on a non-GAAP basis;

Outlook for the full fiscal year 2021:

-- Revenue of approximately $77.0 billion, or approximately $72.5 billion on a non-GAAP basis;

-- Operating profit margin was approximately 54.5%, and approximately 56.5% on a non-GAAP basis;

-- The tax rate is approximately 19%, and approximately 13% on a non-GAAP basis;

-- Earnings per share of approximately $4.00, or approximately $4.60 on a non-GAAP basis;

-- Full-year capital expenditures of approximately $19 billion to $20 billion, or approximately $19 billion to $20 billion on a non-GAAP basis;

-- Non-GAAP free cash flow was approximately $10.5 billion.