Apr 24, 2020 15:04:00

Intel CEO who announced the first quarter financial results of 2020 claims that 'a great company will grow due to the crisis'

by

Thomas Hawk

On April 23, 2020, major semiconductor maker Intel announced its first quarter 2020 financial results. Although the demand for semiconductors expanded significantly due to the increase in telecommuting associated with the pandemic of the new coronavirus (COVID-19), the first quarter results were extremely strong, but the future outlook is uncertain.

Intel CEO: Bad companies are destroyed by crises ... great companies are improved by them | VentureBeat
https://venturebeat.com/2020/04/23/intel-ceo-bad-companies-are-destroyed-by-crises-great-companies-are-improved-by-them/

Q1-2020_EarningsRelease-USE-Q1-2020_Earnings-Release.pdf
(PDF file) https://s21.q4cdn.com/600692695/files/doc_financials/2020/Q1/Q1-2020_Earnings-Release.pdf

Coronavirus clouds Intel outlook, despite short-term bump from PC buying-Reuters
https://www.reuters.com/article/us-intel-results/intel-not-updating-full-year-outlook-due-to-economic-uncertainty-idUSKCN2253GZ

Intel reports Q1 2020 revenue of $ 19.8 billion, up 23% despite coronavirus | VentureBeat
https://venturebeat.com/2020/04/23/intel-reports-q1-revenue-of-19-8-billion-up-23-from-2019-despite-coronavirus/

Intel's first-quarter sales were $ 19.8 billion (about 2.3 trillion yen), an increase of 23% from the previous year, and earnings per share were $ 1.45 (about 160 yen), exceeding analysts' forecasts It became a financial statement. The data center business is growing 33% year-on-year, and the PC business is also growing 14% year-on-year, and

George Davis CFO is increasing the demand for work from home worldwide, Intel's chip We see an increase in demand for. Not only are individual workers investing in the PC environment at home by working from home, but companies are also working on strengthening the infrastructure to support remote work.

In response, Intel CEO Bob Swan said, 'Intel's achievements in the first quarter have protected our employees and our supply chain and delivered our products to our customers in the face of this unprecedented challenge. It is a testimony. The role that technology plays in the world has never been more important, and our opportunities to enrich our lives and enable our customers to succeed are more important than ever. ”

While the first quarter results were strong, it is unclear what the outlook is. The COVID-19 pandemic has led to urban blockades in countries such as Southeast Asia where chip supply chains exist. We also had the opportunity to

showcase our products, such as the Consumer Electronics Show in Las Vegas in January 2020, but the possibility of a big event due to a pandemic is almost eliminated.

In addition, Intel is aiming to ship the 10-nanometer processor ' Tiger Lake (Tiger Lake) ' in the third quarter, and this preparation cost will be recorded in the second quarter financial results. Intel forecasts sales for the second quarter will be $ 18.5 billion (about 1.9 trillion yen), down from the first quarter, and earnings per share will be $ 1.1 (about 120 yen).

However, the return on the cost of investing in Tiger Lake depends on how much Intel Lake Tiger can be sold after the third quarter. Intel executives have so far refused to announce sales forecasts for Tiger Lake and have not announced a new full-year earnings outlook. 'It's very difficult to think about what the second half demand will look like compared to the initial outlook,' Davis said in a conference call with investors.

Regarding the impact of COVID-19, Intel claims that although some projects have been suspended, it will have no major impact on technological development or product sales. It seems that more than 90% of Intel's factory is operating without delay in delivery, and although the supply chain was affected in January, affiliated companies have already restarted production. Swan CEO is one of the cleanest places in the world due to the fact that only a few important employees can enter the Intel factory, and the factory originally requires a dust-free environment. I commented that it is.

Swan CEO said in a conference call with analysts, former Intel CEO

Andrew Grove said, 'The crisis destroys bad companies, good companies survive, and great companies grow.' Quote. 'We would like to thank and praise Intel employees and our supply chain partners for helping us run our business in this unprecedented challenge,' said Swan.

by Laineema