Chip maker Intel announced it pulled in a net profit of $2.8 billion on revenue of $13.8 billion in the second quarter of this year. Versus the same period the year before, revenue is up 8 percent while earnings per share rose 41 percent.
The biggest grower in the company's business structure was the Internet of Things Group, it saw a 24 percent year-over-year growth to $539 million. The data center group saw its business rise by 19 percent year-over-year to $3.5 billion and the PC client group saw a revenue increase of 6 percent to $8.7 billion.
The company plans to give more money back to its shareholders. In the second quarter Intel paid dividends of $1.1 billion and used $2.1 billion to repurchase stock, share repurchases are expected to accelerate to $4 billion in the third quarter.
Intel Corporation today reported second-quarter revenue of $13.8 billion, operating income of $3.8 billion, net income of $2.8 billion and EPS of $0.55. The company generated approximately $5.5 billion in cash from operations, paid dividends of $1.1 billion, and used $2.1 billion to repurchase 74 million shares of stock.
“Our second-quarter results showed the strength of our strategy to extend the reach of Intel technology from the data center to PCs to the Internet of Things,” said Intel CEO Brian Krzanich. “With the ramp of our Baytrail SoC family, we have expanded into new segments such as Chrome-based systems, and wer are on track to meet our 40 million unit tablet goal. In addition, we hit an important qualification milestone for our upcoming 14nm Broadwell product, and expect the first systems to be on shelves during the holidays.”
Intel announced that it intends to return more cash to shareholders by lowering its cash balance further through increased share repurchases. The board of directors authorized an increase of $20 billion to its share repurchase program and the company is forecasting share repurchases of approximately $4 billion in the third quarter, with additional share repurchases in the fourth quarter. Over the last decade Intel has returned almost $90 billion to shareholders through dividends and share repurchases.
“This change in our capital structure is the continuation of a multi-year focus on creating value and returning cash to our shareholders, and reinforces our confidence in the business," said Stacy J. Smith, Intel CFO and executive vice president.
Q2 Key Business Unit Trends
PC Client Group revenue of $8.7 billion, up 9 percent sequentially and up 6 percent year-over-year.
Data Center Group revenue of $3.5 billion, up 14 percent sequentially and up 19 percent year-over-year.
Internet of Things Group revenue of $539 million, up 12 percent sequentially and up 24 percent year-over-year.
Mobile and Communications Group revenue of $51 million, down 67 percent sequentially and down 83 percent year-over-year.
Software and services operating segments revenue of $548 million, down 1 percent sequentially and up 3 percent year-over-year.