Cloud Computing: Intel beats expectations, but data center sales slow

Grazed from MarketPlace. Author: Ben Johnson.

Intel reported fourth quarter earnings after the market closed Thursday, that showed a continuing decline in its PC chip sales and only a slight growth in its data center business. The Santa Clara, Calif.-based chip maker reported that it’s net income in the fourth quarter fell 1 percent to $3.6 billion, or 74 cents earnings per share, compared to $3.7 billion, or 74 cents earnings per share, in the quarter a year earlier. The company posted revenue of $14.9 billion, up 1 percent from the previous year.

Wall Street analysts polled by Thomson Reuters had expected earnings of 63 cents per share on $14.8 billion in revenue. Full year revenue was $55.4 billion, down 1 percent. Net income was $11.4 billion, down 2 percent. Despite the earnings beat, shares fell 4.61 percent in the after-hours period to $31.22, after trading up 2.6 percent to $32.74 in Thursday’s session…

Intel’s PC chip revenues declined 1 percent, as PC sales continue to fall. Revenues from data center business, only rose 5 percent to $4.3 billion, compared to 12 percent growth in the third quarter and double-digit growth in the first two quarters of 2015. The business, which sells Intel chips for servers that power data centers and cloud computing, accounted for almost 50 percent of Intel’s operating income…

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