Slow PC sales slump Intel's growth

Intel's growth in data centre and Internet of Things (IoT) sectors having been dragged down by the continuing slump in traditional PC sales.

The company reported flat revenue for its first financial quarter: it had $12.8 billion (£8.70 billion) in revenue and an operating income of $2.6 billion (£1.77 billion) for its first quarter of the 2015 financial year.

Despite the 0.9 percentage-point increase in gross margin, the results fail to show growth, Bit-Tech says, citing Intel’s CEO Brian Krzanich:

"Year-over-year revenues were flat, with double-digit revenue growth in the data centre, IoT and memory businesses offsetting lower than expected demand for business desktop PCs,” Intel Krzanich explained of the financial report. “These results reinforce the importance of continuing to execute our growth strategy.”

Intel's Client Computing Group dropped 16 per cent quarter-on-quarter and eight per cent year-on-year. It did, however, still bring in $7.4 billion (£5.03 billion) in revenue for the company.

The company’s IoT division dropped 10 per cent quarter-on-quarter but saw an 11 per cent increase in revenue year-on-year.

The newcomer to the company's businesses is still very much a minnow for the company, however, earning just $533 million (£361 million). Just for reference, Intel’s software and services division earned $534 million (£362 million).

The company's full report, along with a recording of the earnings call and commentary documentation, is available at the investor relations site.