Intel’s Second Quarter of 2022 (Q2’22)
Total Q2’22 Revenue
Client Computing (CCG)
Datacenter and AI (DCAI)
Network and Edge (NEX)
Accelerated Computing Systems
and Graphics (AXG)
Intel Foundry Services (IFS)
Q2’22 Non-GAAP EPS
$0.29 79% YoY [$0.41 below prior guidance]
NEX Quarterly Revenue
Mobileye Quarterly Revenue
This quarter’s results were below the standards we have set for the company and our shareholders. We must and will do better. The sudden and rapid decline in economic activity was the largest driver, but the shortfall also reflects our own execution issues. We are being responsive to changing business conditions, working closely with our customers while remaining laser-focused on our strategy and long-term opportunities. We are embracing this challenging environment to accelerate our transformation.
Pat Gelsinger, Intel CEO
We are taking necessary actions to manage through the current environment, including accelerating the deployment of our smart capital strategy, while reiterating our prior full-year adjusted free cash flow guidance and returning gross margins to our target range by the fourth quarter. We remain fully committed to our business strategy, the long-term financial model communicated at our investor meeting and a strong and growing dividend.
David Zinsner, Intel CFO
FY’22 Non-GAAP Outlook
Net Capital Spending
$65B – $68B
Intel Quarterly Financial and Business Report Page 1 of 2
Intel 7 now shipping in aggregate over 35 million units
• Intel 4: Ready for volume production in 2H 2022
• Intel 3, 20A and 18A: At or ahead of schedule
Customer and Partner Wins
MediaTek to use IFS to manufacture new chips for a range of smart edge devices
• Launched: Alder Lake 12th Gen Core processors; world’s best mobile processor1
• Launched: Habana® Gaudi®2 and Habana® Greco™
• Shipped: Initial volumes of Mount Evans, Intel’s first ASIC-based IPU
• Shipped: Intel’s first Blockscale™ ASIC and Arc™ A-series GPUs for laptops
• Launched: IFS Cloud Alliance, including Amazon Web Services, Microsoft Azure
• Amazon Web Services: Agreed to expand its partnership with Intel to include co-development of multi-gen datacenter solutions optimized for AWS infrastructure and Intel as a strategic customer for internal workloads, including EDA
• Lockheed Martin: Entered MOU to utilize 5G for military personnel, satellites, air, land, sea
• Accenture: Partnered to launch a series of trained AI reference kits to the open-source community
• NVIDIA: Selected Sapphire Rapids for use in its new DXG-H100
• Meta: Expanded its supply agreement, leveraging Intel’s IDM advantage so that it can meet its expanding compute needs
• Achieved net positive water in U.S., Costa Rica, and India2
• Sustained 80% renewable electricity use globally2
= Record revenue; Q2 (second-quarter); YoY (year-over-year); GAAP (general accepted accounting principles); EPS (earnings per share); FY (full-year).
Q2’22 non-GAAP EPS ($0.29) is Q2’22 GAAP EPS (-$0.11) after adjustment for acquisition-related adjustments (+$0.09), restructuring and other charges (+$0.02), share- based compensation (+$0.22), patent settlement (+$0.05), Optane inventory impairment (+$0.14), gains/losses on equity investments, net (+$0.02), tax reform (+$0.01) and income tax effects (-$0.15). FY’22 non-GAAP EPS Outlook ($2.30) is FY’22 GAAP EPS Outlook ($2.57) after adjustment for acquisition-related adjustments (+$0.37), restructuring and other charges (-$0.23),share-based compensation (+$0.79), patent settlement (+$0.05), Optane inventory impairment (+$0.14), gain from divestiture (-$0.30), gains/losses on equity investments, net (-$1.05), tax reform (-$0.17) and income tax effects (+$0.13). For a full explanation of these non-GAAP measures, see Intel’s Q2’22 earnings release at intc.com. Year-over-year comparisons, including for Intel Q2’22 revenue, exclude NAND memory business from 2021 results. We completed the first closing of the divestiture on December 29, 2021. Year-over-year comparisons also exclude share-based compensation and gains/losses on equity investments. Intel FY’22 revenue outlook is presented on a GAAP basis. Graphic omits intersegment and All Other revenue.
Our FY’22 outlook and other statements about future plans, expectations, and opportunities, including with respect to future products and technologies, are forward-looking statements. They are based on current expectations as of July 28, 2022 but are subject to many risks and uncertainties that could cause actual results to differ materially from those anticipated. Important factors that could cause actual results to differ materially are set forth in Intel’s Q2’22 earnings release at intc.com, and our most recent reports on Forms 10-K and 10-Q, available at intc.com and sec.gov.
Intel Quarterly Financial and Business Report Page 2 of 2
Intel Corporation published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 20:07:55 UTC.
Intel’s Second Quarter of 2022 (Q2’22)