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CEO talks up innovation elsewhere as weak PC market hurts Intel

Simon Quicke

Intel's boss has talked up the performance of its PC operations in the fourth quarter and its improving speed to market with products that are designed to get the firm back on the cutting edge of technology developments.

Speaking about the fourth quarter results, Brian Krzanich, CEO of Intel, said that there were encouraging signs that it had not only started to see some returning stability to its traditional operations but had shown at the recent Consumer Electronics Show (CES) that it was now bringing new products to market more quickly.

For the fourth quarter revenues of $13.8bn were down by a single percent compared to 2013, blamed by the ongoing struggles in the PC market, with net income coming in at $2.6bn, compared with $2.5bn in the same period last year.

As well as PC issues, where growth was flat year-on-year, the performance on the server side, 8% up in the quarter, was not as much as some analysts had been looking out for and added to a sense of the need for more urgent moves into other form factors.

"The desktop business was particularly strong in Q4 growing 11% over last year...Enterprise, however, fell short of our expectations for the fourth quarter and the year as we overestimated the rate of recovery among corporate buyers," said Krzanich.

He added that his strategy was among other things to bring innovation to market more quickly: "Last week at CES there was evidence of our progress as we demonstrated technologies that were on our road map just six months ago. Technologies that we expect will be available this year."

The firm saw improvements in the fourth quarter in its cloud, storage and networking areas and the firm is trying to position itself as a source of wearable technology solutions.

"We are building on a foundation upon which we will compute the years to come and we’re beginning this year in a better position than we have been last year," he added.

For the full fiscal year Intel reported revenue of $52.7bn and net income of $9.6bn.


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