Intel reported its fiscal Q2 2013 earnings a few moments ago, and they just fell short of analyst predictions. The legendary chipmaker reported earnings of $0.39 per share and $12.8 billion in revenue (down 5 percent from the year-ago quarter) this time around. According to the consensus provided by Bloomberg and Yahoo Finance, analysts expected the company to report earnings of $0.40 per share on $12.9 billion in revenue.
While it’s a seemingly mild miss, some of Intel’s most important divisions saw some unsettling drops — its PC Client group, for instance, accounted for $8.1 billion of that pie up 1.4 percent, but that figure is down 7.5 percent from last year.
Intel has spent what seems like ages now trying to revitalize itself while people continue to pass over more traditional PCs in favor of tablets and smartphones. Estimates released earlier this month by the analysts at Gartner didn’t paint a terribly positive picture — while the decline wasn’t as pronounced as it was during the quarter that preceded it, Gartner reported an 11 percent dip in global PC shipments.
Some fresh blood in the chief executive’s seat may well turn things around, and the person tapped to take over the role after Paul Otellini’s departure seems keen to accelerate Intel’s mobile position. In response to a marked consumer shift away from more traditional PCs, newly installed Intel CEO Brian Krzanich told Reuters in late June that the company would focus more heavily on its mobile Atom platform to keep Intel in fighting shape in the mobile space.
That’s not much of a surprise considering how heavily Intel played up Atom-powered tablets in its corner of this year’s CES, but Krzanich is reportedly holding weekly meetings to speed up the process of developing and improving those Atom chips. That said, the company still has high hopes for its recently released line of Haswell chips, which are meant to pull double duty both in notebooks and in tablets (like Samsung’s Galaxy Tab III).
Of course, Intel is entertaining some more obtuse possibilities, too. Murmurs of a TV service meant to compete with cable providers have become more pronounced — it’s reportedly going to be called ‘OnCue’ and is said to launch before the end of the year. Also reportedly on the table is the notion of manufacturing chips for other companies, though there’s been little word on how strongly Intel is considering that option.
Looking forward, Intel expects to generate $13.5 billion in revenue next quarter, though CFO Stacy Smith said in an addendum that the company expects “the overall PC market segment for 2013 to be weaker than we expected at the beginning of the year.” As always, Intel will be holding an earnings conference call at 5 p.m. Eastern/2 p.m. Pacific. I’ll update the post if anyone says anything tantalizing.
This is a developing story, please refresh for updates.