Q1 2014 Earnings Call Transcript

Transcript Call Date 04/15/2014

Operator: Good day, ladies and gentlemen, and welcome to the Intel Corporation First Quarter 2014 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. As a reminder, today's conference is being recorded.

I would now like to turn the conference over to Mark Henninger, Director of Intel Investor Relations. Please go ahead, sir.

Mark Henninger - Director, IR: Thank you and welcome everyone to Intel's first quarter 2014 earnings conference call. By now you should have received a copy of our earnings release and the CFO commentary that goes along with that. If you've not received both documents, they are available on our Investor website, intc.com.

I'm joined today by Brian Krzanich, our CEO; and Stacy Smith, our Chief Financial Officer. In a moment, we'll hear brief remarks from both of them followed by Q&A.

Before we begin, let me remind everyone that today's discussions contain forward-looking statements based on the environment as we currently see it, and as such, does include risks and uncertainties. Please refer to our press release for more information on the specific risk factors that could cause actual results to differ materially.

Also, if during this call we use any non-GAAP financial measures or references, we'll post the appropriate GAAP financial reconciliations to our website, intc.com.

So with that, let me hand it over to Brian.

Brian M. Krzanich - CEO: Thanks Mark. 2014 is off to a solid start with our first quarter closing much as we expected. PC Client platform unit volume was up year-over-year for the second consecutive quarter. Even as challenges remain in the consumer client segment, we saw continued improved in enterprise clients, driven by increasing form factor innovation and refresh.

Mobile unit volume was up year-over-year for the first time since Q2 2012, while the desktop units were flat year-over-year, with all-time record core volume and mix.

Our Data Center revenue grew 11% year-over-year and the enterprise segment was again in positive territory, up 3% from the last year, while cloud, networking and storage were all up in excess of 20%.

The newly formed Internet of Things Group, which includes our embedded business, grew 32% year-over-year, with particularly strong demand in in-vehicle infotainment and retail. While the Internet of Things Group's (added) volume nearly doubled over Q1 of last year.

We have all-time record NAND revenue driven by the Data Center, and particularly the cloud, and McAfee reported Q1 bookings along – record Q1 bookings along with an 8% year-over-year increase in consumer (levels).

Perhaps most importantly, we made progress against our most critical strategic objective and I'd like to take a few minutes to highlight that progress.

In PCCG where we're working to reinvent computing new form factor innovation, longer battery life and OS of choice, we saw 2-in-1 volume increase more than 20% sequentially in a seasonally down quarter. We're now expecting more than 70 2-in-1 design for the back-to-school selling season and many will be offered at 699 or less. These trends in combination with renewed interest in Windows 8 from our customers are encouraging. At the same time, we are ramping more than 130 Atom microarchitecture notebook and desktop designs with our Bay Trail M and D platforms, significantly increasing our presence in the value segment. We exited the quarter with market segment share leadership from Chrome systems and saw positive traction in small form factor and all-in-one computing.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.