Intel announced that starting with the Q1 2015 earnings report that will be published on April 14th, it will make some changes to how it reports the performance of its divisions. We've wrote several times about the big losses Intel is having in its mobile division, part of the company's contra-revenue strategy to gain marketshare and now it appears Intel will no longer report the financial figures of its mobile division.
The chip giant explains the new accounting presentation will stick the PC Client Group and the Mobile and Communications Group together into the new Client Computing Group. Other major groups include the Data Center Group, the Internet of Things Group and the Software and services segments.
The new presentation will make it less obvious at how much money Intel is bleeding in its mobile division, even though the chip giant promised it's slowly turning this division around. For 2014, the mobile unit reported an operating loss of $4.21 billion but that didn't stop it from posting a 2014 net profit of $11.7 billion.
Beginning with the publication of Intel Corporation's first-quarter earnings report on Tuesday, April 14, the company will revise the presentation of its operating segments to reflect the combination of the PC Client Group and the Mobile and Communications Group to create the Client Computing Group. The new group was created to address all aspects of the client computing market segment and utilize Intel's intellectual property to offer compelling customer solutions. The company is providing its updated financial reporting structure now, as shown below, in order to give visibility into the new model. Actual results will be reported with the first-quarter earnings report. At that time, Intel will also provide commentary on the company's goal to improve mobile profitability by $800 million in 2015.
Client Computing Group: Includes platforms designed for the notebook (including Ultrabook™ devices), 2 in 1 systems, the desktop (including all-in-ones and high-end enthusiast PCs), tablets, and smartphones; mobile communication components; as well as wireless and wired connectivity products.
Data Center Group: Includes server, network, and storage platforms designed for enterprise, cloud, communications infrastructure, and technical computing segments.
Internet of Things Group: Includes platforms designed for embedded market segments including retail, transportation, industrial, and buildings and home, along with a broad range of other market segments.
Software and services operating segments consists of the following:
- McAfee: Includes software products for endpoint security, network and content security, risk and compliance, and consumer and mobile security.
- Software and Services Group: Includes software and hardware products and services that promote Intel® architecture as the platform of choice for software development.
All other consists of the following:
Non-Volatile Memory Solutions Group: Includes NAND flash memory products for use in a variety of devices.
New Devices Group: Includes reference devices and technology platforms ready to be used by customers as well as System-on-Chip architecture specifically designed for wearable and other emerging compute opportunities.
Corporate: Revenue, expenses, and charges such as:
- Amounts included within restructuring and asset impairment charges;
- A portion of employee benefits, compensation, and other expenses not allocated to the operating segments;
- Divested businesses for which discrete operating results are not regularly reviewed by our chief executive officer;
- Results of operations of startup businesses that support our initiatives, including our foundry business;
- Acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and goodwill.