Intel Corporation (NASDAQ:INTC) is one of the best performing companies in the technology industry. The firm recently released its third-quarter revenue report registering revenues above the projection for the quarter.
The quarterly report was released on October 13 in California. The third quarter revenue amounted to $14.5 billion with a gross margin of 63%. Intel registered a net income of $3.1 billion and an operating income of $4.2 billion with an EPS of 64 cents. The overall earnings generated from its businesses amounted to roughly $5.7 billion. The firm spent $1 billion to repurchase 36 million shares and paid out dividends worth $1.1 billion.
The company’s CEO Brian Krzanich stated that the results for the third quarter were positive despite the harsh economic environment. The success can mostly be attributed to the innovation involved in its products. Customers are particularly excited about the company’s 6th generation Intel Core as well as the 3D XPoint technology that is the first groundbreaking technology for the firm in the memory category in more than 20 years.
The company generated the revenue from different areas including the Client Computing group that brought in $ 85 billion, a 7% decline on a year over year basis but a 13% increase on a sequential basis. The Data Center Group brought in $4.1 billion, a 12% rise year over year and an 8% sequential rise. The Internet of Things brought in $581 million, therefore registering a 4% sequential rise and a 10% year over year rise. The Software and services division brought in $556 million.
The company’s projected revenue for the fourth quarter of the 2015 financial year is $ 14.8 billion, give or take $500 million. The rough estimate for the gross margin is 62%. Other projections include the R&D spending that amounts to $5 billion, the amortization of intangibles related to acquisitions projected at $70 million. Restructuring charges are estimated at $25 million while the tax rate estimate is 25%.
The capital spending projection for the whole year is $7.3 billion, give or take $500 million. The fourth quarter earnings are scheduled to be announced on January 14 in 2016.