Intel’s data center group has delivered better than expected Q3 2014 results with revenue up 5 percent from the previous quarter to US$3.76bn.
The data center group saw double-digit growth across all four major market segments – enterprise (up 11 percent), networking (up 16 percent), HPC (up 22 percent) and cloud services (up 34%). Operating income for the data center group was US$1.9bn.
In the earnings call CEO Brian Krzanich said: “We also launched the new Xeon E5 processors, formerly known as Grantley.”
“Formally launched just five weeks ago, E5 is already 10 percent of our DP or two-socket volume,” Krzanich said.
Intel’s CFO Stacy Smith added the data center group achieved better growth than expected with platform volumes up 6 percent from last year and the average selling price up by 9 percent.
“We are seeing robust growth rates across all the segments for our data center business,” Smith said. “In the data center, we continue to innovate our products; bring increased differentiation and value to our customers. And underlying all of this is our manufacturing leadership.”
“We have led the world to 14-nanometer and plan to do the same with 10-nanometer process technology.”
Intel’s Q3 2014 revenue is up by 5 percent to $14.6bn from $13.8bn the previous quarter and up by 8 percent year-over-year. The company’s net income is up by nearly a fifth (19 percent) to $3.3bn from $2.8bn last quarter and up by 12 percent year-over-year.
Earnings per share for Q3 2014 were reported at $0.66 up 20 percent from $0.55 in Q2 2014 and up 14 percent year-over-year.
Intel’s Internet of Things (IoT) group reported revenue of $530m down 2 percent from Q2 2014 but up 14 percent year-over-year.
The PC Client group reported revenue of $9.2bn up 6 percent from Q2 2014 and 9 percent year-over-year. The group's platform growth increased by 15 percent year-over-year and inclusive of tablets and 30 percent unit growth.
Outlook for Q4 2014
Intel predicts Q4 2014 revenue will be in the region of $14.7bn (plus or minus $500m) and its full-year capital spending to total $11bn (plus or minus $500m).
The search for control over hybrid IT spend