After the closing bell on Thursday, Intel (NASDAQ: INTC) reported results for the second quarter of fiscal year 2017. The world's largest semiconductor company continued to work its two-pronged strategy fork, attacking the Internet of Things (IoT) and data-center markets with equal vigor. Here's how the second quarter worked out for Intel.
Intel's Q2 by the numbers
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The second-quarter report came in near the top of each metric's guidance range with the exception of a gross margin reading near the midpoint. Revenue streams and profits ran rich, while operating costs came in a bit lower than expected.
What's behind the plain numbers?
Among Intel's five reportable business segments, non-volatile memory products led the way with a 58% year-over-year sales jump. At $874 million, that collaboration with memory expert Micron Technology passed the Internet of Things group in terms of revenue contribution. That's not easily done, since the IoT division was Intel's second-fastest revenue gainer, at 26%.
The larger client-computing and data-center operations grew sales by 12% and 9%, respectively, while the programmable solutions segment that was built around Intel's Atmel acquisition saw sales sliding 5% lower.
Based on these results and positive market trends in the PC industry, Intel raised its full-year revenue forecast from $60 billion to $61.3 billion. The operating profit target got a $0.6 billion boost, landing at $17.9 billion. On the bottom line, Intel now expects to record full-year GAAP earnings of $2.66 per share -- a $0.10 increase.
"We feel great about where we are relative to our three year plan and heading into the second half," said Intel CFO Bob Swan in a prepared statement. "Intel's transformation continues in the third quarter when we expect to complete our planned acquisition of Mobileye (NYSE: MBLY)."
Indeed, the quarter's $4.7 billion of operating cash flows completed the capital requirements for closing the Mobileye buyout. The companies are just waiting for a handful of regulatory approvals before Intel can take that big step into the driverless car market with this splashy $15 billion buyout of an established leader.
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