Net revenue of the US semiconductor company remained flat year over year

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Fab 42 of Intel located in Arizona, US. (Credit: Intel Corporation)

Intel has reported a net income of $5.06bn for the second quarter of 2021 (Q2 2021), a slight decline of 1% compared to $5.1bn for the same quarter of the previous year.

In the previous quarter, that is Q1 2021, the US semiconductor company had posted a net income of $3.36bn.

Intel’s diluted earnings per share (EPS) in Q2 2021 were $1.24, which is up by 4% compared to an EPS of $1.19 in the same quarter of 2020.

The company’s net revenue in the reported quarter that ended 26 June 2021 was 19.63bn, compared to $19.78bn posted in Q2 2020. The revenue in the previous quarter for the firm was $19.67bn.

For the third quarter of 2021, Intel expects to earn revenue of around $19.1bn.

The company said that its Q2 2021 revenue surpassed its previous guidance issued during the Q1 2021 results. The second quarter revenue was driven by the performance of the client computing group and a strong recovery in the Internet of Things group and the enterprise portion of the data centre group.

The client computing group had a 6% growth in its Q2 2021 net revenue to $10.1bn, compared to $9.49bn in the same quarter of the previous year.

On the other hand, the company’s data centre group had a 9% drop year-over-year (YoY) in its net revenue for Q2 2021 to $6.45bn from Q2 2020 revenue of $7.11bn.

Its Internet of Things division reported Q2 2021 net revenue of $1.31bn, compared to $816m made in Q2 2020. Mobileye, which is part of the unit, posted net revenue of $327m in the reported quarter, compared to $146m in Q2 2020.

The company’s programmable solutions group posted Q2 2021 net revenue of $486m compared to $501m in the corresponding quarter of the previous year.

Intel CEO Pat Gelsinger said: “There’s never been a more exciting time to be in the semiconductor industry. The digitisation of everything continues to accelerate, creating a vast growth opportunity for us and our customers across core and emerging business areas.

“With our scale and renewed focus on both innovation and execution, we are uniquely positioned to capitalize on this opportunity, which I believe is merely the beginning of what will be a decade of sustained growth across the industry.

“Our second-quarter results show that our momentum is building, our execution is improving, and customers continue to choose us for leadership products.”

Earlier this month, reports emerged in the media that Intel is planning to acquire semiconductor manufacturer GlobalFoundries for nearly $30bn from Mubadala Investment.