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Quarter of growth for Intel, even with the PC market in crisis

The announcement of the internal restructuring plan of Intel, which provides for a reduction of about 12,000 units in the number of employees a total of global, happened to coincide with the release of quarterly financial results of the American company.

During the first three months of 2016, Intel achieved revenue of 13.7 billion dollars, an increase of 7% compared to the same period of 2015. Operating profit remained effectively unchanged from 12 months ago, amounting to 2.6 billion dollars, and the same must be said for the 2 billion dollar quarterly net profit. Slightly down EBITDA, which comes down from the previous 60.5% to 59.3%.

The Client Computing division was to be able to have a greater impact on the quarter's revenue, with sales of $ 7.5 billion, an increase of 2% compared to the first quarter 2015. The division recorded a peculiar dynamic in the period: down 15 % in terms of total volumes, in line with the general decline in PC sales, but 19% increase in average selling price.

In detail, we highlight as sales of desktop solutions have declined by 4% in volume, and the notebook by 2%; to affect significantly those of the tablet proposals, down 44% in volume but growing significantly in terms of ASPs.

In light of these data we can assume that Intel has gradually declined, though not entirely suspended, the incidence of contra revenues policy for the supply of chips to tablet manufacturers and low-cost mobile device, maneuver with which Intel has bet to increase its market share in the industry. A drop of 44% in volume, however, combined with an increase in the average sales price, it is not that confirms this: fewer chips supplied to partners, but products that are now being sold at market prices below cost and not as happened previously.

The results of the Data Center Group sees revenue of $ 4 billion, up 9% on an annual basis. Given the positive, + 22%, even for the group Internet of Things and down 6% on Non-Volatile Memory Solutions Group. Intel's estimates for the results of the second quarter 2016 are revenues of $ 13.5 billion, with a fluctuation margin of 500 million dollars up or down. The gross operating margin expected for the next three months is 61%.

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