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  Date: 22/07/2013

PC chip market improving slowly; Intel and AMD grew revenues in Q2 2013

The two major indicators of PC semiconductor chip market, Intel and AMD's revenues are released for 2nd Q 2013. Intel has reported a second-quarter revenue of $12.8 billion, operating income of $2.7 billion, net income of $2.0 billion and EPS of $0.39.

"In the second quarter, we delivered on our quarterly outlook and made several key product announcements," said Intel CEO Brian Krzanich. "In my first two months as CEO, I have listened to a wide variety of views about Intel and our industry from customers, employees and my leadership team and I am more confident than ever about our opportunity as a company."

"Looking ahead, the market will continue buying a wide range of computing products," he added. "Intel Atom and Core processors and increased SOC integration will be Intel's future. We will leave no computing opportunity untapped. To embrace these opportunities, I've made it Intel's highest priority to create the best products for the fast growing ultra-mobile market segment."

Intel's revenue by segment:
PC Client Group revenue of $8.1 billion, up 1.4 percent sequentially and down 7.5 percent year-over-year.
Data Center Group revenue of $2.7 billion, up 6.1 percent sequentially and flat year-over-year.
Other Intel Architecture Group revenue of $942 million, down 3.7 percent sequentially and down 15.0 percent year-over-year.
Intel said its business outlook for Q3 2013 revenue is $13.5 billion, plus or minus $500 million.

The other main PC processor chip maker AMD has announced revenue for the second quarter of 2013 of $1.16 billion, an operating loss of $29 million and a net loss of $74 million, or $0.10 per share. The company reported a non-GAAP operating loss of $20 million and a non-GAAP net loss of $65 million, or $0.09 per share. Sequentially AMD's 2Q 2013 revenues grew by 6.4%, compared to AMD 1Q 2013 revenue of 1.09 Billion.

"Our focus on restructuring and transforming AMD resulted in improved financial results," said Rory Read, AMD president and CEO. "Our performance in the second quarter was driven by opportunities in our new high-growth and traditional PC businesses. Looking ahead, we will continue to deliver a strong value proposition to our established customers and also reach new customers as we diversify our business. We expect significant revenue growth and a return to profitability in the third quarter."

AMD says for its third quarter of 2013, it expects revenue to increase 22 percent, plus or minus 3 percent, sequentially.

These figures indicates Windows 8 growth is slow but growing. Windows 8 is not a failure but not as spectacular as other Windows previous operating systems.

To get even more stronger point supporting personal computer semiconductor growth is the revenue announcement by VIA Technologies which gets much of its revenues from PC market. VIA has reported a revenue of 28.3 Million US$ for the month of June 2013, a month-over-month revenue growth of 200%, and a 168% growth compared to revenue for the same month year ago. What is not clear from VIA's release is that they have not disclosed where the revenue is coming from.
Author: Srinivasa Reddy N
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