Financial results roundup: Intel, AMD, Google (plus Google's first driverless car injury)

Memory and IoT accounted for more than 70% of Intel's operating profit; AMD posts another loss
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Memory and the Internet of Things (IoT) accounted for more than 70 per cent of Intel's operating profit during Q2, as AMD posted another loss this week.

Here's our roundup of the latest financial results at big tech companies.

AMD

AMD announced that revenue for the second quarter of 2015 dropped 35 per cent year-on-year to $942 million, while its operating loss of $137 million was the same as it was during the same period last year.

It said this was primarily due to lower revenue and gross margin driven by lower sales to OEMs, attributable to a weak consumer PC market.

Its Computing and Graphics segment revenue decreased 54 per cent from Q2 2014, due to decreased sales to OEMs of client notebook processors, as it posted an operating loss of $147 million.

Its Enterprise, Embedded and Semi-Custom segment saw a year-on-year decrease of eight per cent was primarily driven by decreased server sales and lower non-recurring engineering revenue, with operating income at $27 million, down from $97 million in Q2 2014.

The 'All Other' category operating loss was $17 million compared with an operating loss of $28 million in Q2 2014. 

"Strong sequential revenue growth in our EESC segment and channel business was not enough to offset near-term challenges in our PC processor business due to lower than expected consumer demand that impacted sales to OEMs," said Dr. Lisa Su, AMD president and CEO.

Intel

Intel had a better Q2 financial period, with revenue of $13.2 billion, slightly better than outlook. Operating income dipped 25 per cent to $2.9 billion while net income fell three per cent to $2.7 billion.

Client Computing Group revenue reached $7.5 billion, down 14 per cent year-on-year, while Data Center Group revenue rose 10 per cent year-on-year to $3.9 billion, and Internet of Things group revenue increased four per cent year-on-year to $559 million.

Software and Services operating segments revenue dipped three per cent year-on-year to $534 million.

Intel confirmed that its 6th Gen Intel Core processor Skylake is ready for production which will power new devices in the second half of 2015. However, it also delayed its Cannonlake 10nm tech to 2017, effectively breaking its own Moore's Law.

“Second-quarter results demonstrate the transformation of our business as growth in data center, memory and IoT accounted for more than 70 per cent of our operating profit and helped offset a challenging PC market," said Intel CEO Brian Krzanich.

“We continue to be confident in our growth strategy and are focused on innovation and execution. We expect the launches of Skylake, Microsoft's Windows 10 and new OEM systems will bring excitement to client computing in the second half of 2015."

Google

The search and tech giant posted revenues of $17.7 billion with revenue growth of 11 per cent year-on-year during the quarter ending June 30th.

Operating income grew 13 per cent year-on-year to $4.8 billion while net income rose to $3.9 billion.

Advertising revenue was up 11 per cent year-on-year to $16 billion, meaning the firm makes about $1 billion in advertising every week.

“Our strong Q2 results reflect continued growth across the breadth of our products, most notably core search, where mobile stood out, as well as YouTube and programmatic advertising”, said Ruth Porat, CFO of Google.

“We are focused every day on developing big new opportunities across a wide range of businesses. We will do so with great care regarding resource allocation.”

The news comes as Google experienced its first accident with one of its driverless Lexus cars.

Three Google employees were taken to hospital with minor whiplash after another car went into the back of it at traffic lights in Mountain View, California, reports The Telegraph.

"Our self-driving cars are being hit surprisingly often by other drivers who are distracted and not paying attention to the road. That’s a big motivator for us," said Google in a statement. 

"Other drivers have hit us 14 times since the start of our project in 2009 (including 11 rear-enders), and not once has the self-driving car been the cause of the collision. Instead, the clear theme is human error and inattention. We’ll take all this as a signal that we’re starting to compare favourably with human drivers."

Image source: Shutterstock

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