Intel Reports Third-Quarter 2022 Financial Results
NEWS SUMMARY
• Third-quarter GAAP revenue of $15.3 billion, down 20% year over year (YoY), and non-GAAP revenue of $15.3 billion, down 15% YoY.
• Third-quarter results include GAAP restructuring charges of $664 million, reflecting initial cost reduction actions.
• The company is focused on driving $3 billion in cost reductions in 2023, growing to $8 billion to $10 billion in annualized cost reductions and efficiency gains by the end of 2025.
• Third-quarter GAAP earnings per share (EPS) was $0.25; non-GAAP EPS was $0.59.
• Listed Mobileye on the Nasdaq Stock Exchange this week.
• Revising full-year revenue guidance to $63 billion to $64 billion, reflecting continued macroeconomic headwinds.
SANTA CLARA, Calif., October 27, 2022 – Intel Corporation today reported third-quarter 2022 financial results.
“Despite the worsening economic conditions, we delivered solid results and made significant progress with our product and process execution during the quarter,” said Pat Gelsinger, Intel CEO. “To position ourselves for this business cycle, we are aggressively addressing costs and driving efficiencies across the business to accelerate our IDM 2.0 flywheel for the digital future.”
“As we usher in the next phase of IDM 2.0, we are focused on embracing an internal foundry model to allow our manufacturing group and business units to be more agile, make better decisions and establish a leadership cost structure,” said David Zinsner, Intel CFO. “We remain committed to the strategy and long-term financial model communicated at our Investor Meeting.”
Q3 2022 Financial Highlights
GAAP
Non-GAAP
Q3 2022
Q3 2021
vs. Q3 2021
Q3 2022
Q3 2021
vs. Q3 2021
Revenue ($B)
$15.3
$19.2
down 20%
$15.3^
$18.1
down 15%
Gross Margin
42.6%
56.0%
down 13.4 ppts
45.9%
58.3%
down 12.4 ppts
R&D and MG&A ($B)
$6.0
$5.5
up 10%
$5.4
$4.8
up 12%
Operating Margin
(1.1)%
27.2%
down 28.4 ppts
10.8%
31.8%
down 21 ppts
Tax Rate
642.0%
0.5%
n/m1
(38.7)%
(4.2)%
n/m1
Net Income ($B)
$1.0
$6.8
down 85%
$2.4
$5.9
down 59%
Earnings Per Share
$0.25
$1.67
down 85%
$0.59
$1.45
down 59%
1 Not meaningful.
In the third quarter, the company generated $1.0 billion in cash from operations and paid dividends of $1.5 billion.
