Intel Corporation (NASDAQ:INTC) reported a weak third-quarter, which barely met revenue and earnings per share estimates.
The company known as "Mr. Chips" reported Thursday data-centric revenue fell 10% year-over-year, with DCG revenue falling 7% YoY to $5.9 billion.
In the DCG group, cloud revenue grew 15% YoY due to higher demand from work-at-home, but Enterprise & Government market due to a challenging macro environment.
PC-centric revenue grew 1% YoY to $9.8 billion due to higher demand for PCs. The average selling price (ASP) was down 6% due to an increase in entry-level education PCs.
Gross margins fell a substantial 560 basis point YoY to 54.8%; Operating income fell 22% YoY to $5.4 billion.
The company's 10nm Arizona facility is fully operational and expects to ship 30% higher production volumes.
Intel says it expects Q4 revenue of $17.4 billion, a non-GAAP operating margin of 26.5%, and an EPS of $1.10. For the full-year, Intel sees an operating margin of 31.5% and operating cash flow in the range of $32.2 billion to $33 billion.
Chief Financial Officer George Davis said, "We're seeing increased competition in the second half of the year, but not different levels of competition than we thought. We feel good about where we are on the year. So I would say it's really a mix story and a very different mix than we thought going in."
INTC shares lost $5.39, or 10%, to $48,51.
