Intel has published its financial results for the third quarter of 2023. What is surprising is the low net profit

Intel’s financial results for the second quarter of 2023 were inconclusive. On the one hand, the company achieved a better result than the quarter before, on the other hand, it performed worse than in the same period last year. The first signs of the end of the crisis period are appearing in the industry. However, it seems that Intel is not out of the doldrums yet. What is disturbing is the very low net profit and its decline compared to Q3 2022.

Intel’s revenue in Q3 2023 was USD 14.2 billion. At the same time, the company recorded low net profit. It amounted to only USD 0.3 billion (GAAP). In terms of non-GAAP results, however, it was much better.

Intel revealed its financial results for Q2 2023 – it is better than the quarter before, but still worse than a year ago

Intel’s total revenues in the third quarter of this year were $14.2 billion. This result is 8% worse than last year. At the same time, however, there was a noticeable increase in revenues compared to the previous quarter. Operating profit was much worse. It amounted to only USD 0.3 billion (GAAP) and was 71% lower than in the third quarter of 2022. The non-GAAP results aren’t that bad, as they reported $1.7 billion in net income. This is a better result than in the same period last year.

Intel Core i9-14900K vs AMD Ryzen 9 7950X3D – Test of the fastest and most expensive processors. Heavyweight fight

The highest revenue in the third quarter was recorded in the Client Computing Group segment ($7.9 billion), which includes, among others, consumer computer processors. This is, among other things, due to the quite successful Raptor Lake units. The result obtained is much better than in the previous quarter (USD 6.8 billion), but at the same time worse than in Q3 2022 (USD 8.1 billion). Revenues in the Data Center and AI segment also decreased. In the last quarter they amounted to USD 3.8 billion, in Q2 2023 it was USD 4.0 billion, and in the same period last year it was USD 4.3 billion. This is hardly surprising, however, given the pressure AMD is putting on Intel through its server products.

Intel Core i5-14600K processor test – Not much more efficient than Intel Core i5-13600K. How does it work with DDR5 8000MHz RAM?

The remaining segments have a smaller impact on overall financial results. The Network and Edge division has revenue of $1.5 billion. This is more than in Q2 2023 ($1.4 billion) and much less than in Q3 2022 ($2.1 billion). The Mobileye and Intel Foundry Services divisions performed relatively well. The latter recorded a several hundred percent increase in revenues compared to the same period last year, but is still in the red. With total revenues of $0.31 billion, however, it has a very limited impact on overall results. Although Intel’s net profit (GAAP) may be disturbing, revenues are on average higher than three months earlier. This gives cautious reasons for optimism, but it is difficult to clearly predict how the situation will develop in the future.

Source: Intel