Intel Posts Record Q4 2016 Quarterly Earnings; IoT Segment Sees Double Digit Growth

Intel has reported a record full-year revenue of $59.4 billion. In what is being viewed as a comeback for the processor giant, Intel Corporation posted an impressive full-year revenue of $59.4 billion, operating income of $12.9 billion, net income of $10.3 billion and EPS (Earnings per share) of $2.12.

IoT, Data Center and Client Computing driving growth for Intel

Internet of Things is already around us. With several connected devices making their way into our everyday lives, IoT is all set for a fantastic, exciting journey ahead. Intel’s impressive 2016 full-year performance has been made possible mainly by Internet of Things Group revenue of $2.6 billion – up 15% from 2015, Data Center Group revenue of $17.2 billion – up 8% from 2015 and Client Computing Group revenue of $32.9 billion – up 2% from 2015. Adding to the impressive revenue were Intel Security Group with a revenue of $2.2 billion and Programmable Solutions Group with a revenue of $1.7 billion.

Intel’s ended Q4 with a terrific finish. Non-volatile memory saw impressive growth figures. For the fourth quarter, Non-Volatile Memory Solution Group reported revenue of $816 million -up 25% year-over-year. For the fourth quarter, Intel posted revenue of $16.4 billion, operating income of $4.5 billion, net income of $3.6 billion and EPS of 73 cents. Intel reported non-GAAP operating income of $4.9 billion, net income of $3.9 billion, and EPS of 79 cents. “The fourth quarter was a terrific finish to a record-setting and transformative year for Intel. In 2016, we took important steps to accelerate our strategy and refocus our resources while also launching exciting new products, successfully integrating Altera, and investing in growth opportunities. I’m pleased with our 2016 performance and confident in our future”, said Brian Krzanich, Intel CEO.

Road ahead for Intel

While 2016 has been a splendid year for Intel, 2017 may not be so smooth. AMD Ryzen is expected to be released by February end. AMD Ryzen will give tough competition to Intel, which has so far dominated the computing space. Ryzen’s arrival in the market will disrupt the existing status quo on multiple levels. Most of Intel’s processors are currently placed at a comparatively really high price. AMD Ryzen, likely to be priced under $600, may finally succeed in closing the performance gap with Intel.

How will Intel react to AMD Ryzen? What strategies will it adopt to ensure it retains the coveted number one spot? It will be interesting to see how AMD Ryzen battles it out in the computing space when it releases in just a month from now.