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Intel CFO Stacy Smith Discusses Q2 Earnings and Company Strategy

Strategic Insights

— 1 min read

Intel CFO Stacy Smith spoke with Bloomberg TV's Emily Chang and Jon Erlichman on July 20, 2011, regarding the company's quarterly earnings and future strategy. Intel reported a strong Q2, with revenue reaching $13.1 billion, exceeding analyst expectations. Smith attributed the growth to the company's presence in emerging markets, the enterprise market, and the increasing demand for devices connecting to the Internet, driving the build-out of the Cloud.

Key Takeaways:

  • Intel's Q2 earnings exceeded expectations, with revenue reaching $13.1 billion, a first-ever $13 billion quarter.
  • The company has seen double-digit growth across all reportable segments, with strength in the enterprise market, emerging markets, and devices connecting to the Internet.
  • Intel is benefiting from the build-out of the Cloud, with orders from companies like Google and Facebook.
  • Smith stated that the Internet traffic in 2010 was more than the combined Internet traffic of every year up to 2010, indicating a secular trend driving business growth.
  • Intel plans to extend its process technology leadership into new areas, including tablets and phones, with products expected in the next nine months.
  • The company has a history of acquiring companies with innovative technology, and plans to continue this cadence of acquisitions.
  • Smith watches closely for broader economic trends, such as the European debt crisis and U.S. employment numbers, as they can affect Intel's business.

Statistics:

  • $13.1 billion: Intel's Q2 revenue
  • Double-digit growth: Across all reportable segments
  • 2010: The year in which the Internet traffic exceeded the combined Internet traffic of every year up to 2010
  • 9 months: The timeframe for Intel's new products to reach the market
  • Intel's cash: Used for strategic investments and potential acquisitions
  • Piece of advice: Not to talk specifically about potential acquisition targets to avoid negating the company's position.

Sources:

  • Bloomberg LP (The transcript is provided by Bloomberg LP, and may not be 100% accurate)
  • CQ-Roll Call, Inc. (All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call)

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