More on Intel: Server CPU sales are healthy, mobile sales aren't

|About: Intel Corporation (INTC)|By:, SA News Editor

Intel's (INTC) PC Client Group (PC CPUs + connectivity and living room chips) saw its sales fall 1.5% Y/Y to $7.94B (62% of revenue). The Data Center Group (server/networking/storage chips) saw its sales rise 11% to $3.09B.

Internet of Things Group (embedded products) sales rose 32% to $482M. But Mobile & Communications Group (mobile products, inc. Atom CPUs) sales fell 61% to just $156M.

Software/service sales rose 6% to $553M, and all other sales (inc. flash memory) rose 18% to $545M.

While the PC and data center units respectively had op. income of $2.80B and $1.32B, the mobile unit had a whopping $929M op. loss, and the "Other" unit a $773M op. loss. Internet of Things had a $123M op. profit, and software/services a $7M op. loss.

The groups are the product of a new reporting structure.

PC and data center unit volumes respectively rose 1% and 3% Y/Y. PC ASPs -1% Q/Q and -3% Y/Y, data center ASPs +1% Q/Q and +8% Y/Y. Desktop ASPs +4%, notebooks -8%.

In its CFO commentary (.pdf), Intel attributes it strong Q2 GM forecast to lower 14nm start-up costs, higher volumes, and lower platform write-offs, partly offset by higher tablet volumes and related contra revenue for OEMs.

Intel's cash/investment balance fell by $1B Q/Q to $19B ($11B offshore). Inventories fell by $409M to $3.76B, and headcount by 1K to 106K.

INTC +2% AH. Q4 results, guidance, PR