Intel's profits fell by 26 percent to $1.9bn in Q1 2014, compared with the last quarter of 2013. The firm’s revenue was also down to $12.8bn, dropping by eight percent since the previous quarter.
The chipmaker is suffering from slow demand in its PC market with its PC Client Group reporting revenue of $7.9bn, down eight percent over the last two quarters and down one percent year-over-year.
The firm had expected tough trading as in January it announced plans to cut its workforce by five percent, as it expected no revenue growth this year.
But the latest financial report does show some positive signs for Intel compared with last year, particularly the firm’s Data Center Group, which made $3.1bn, up 11 percent year-on-year.
Meanwhile, Intel’s Internet of Things Group revenue was $482m, up 32 percent year-on-year. Intel chief executive Brian Krzanich said there are signs the PC market has been stabilising and its tablet push is paying off.
“In the first quarter we saw solid growth in the data centre, signs of improvement in the PC business, and we shipped five million tablet processors, making strong progress on our goal of 40 million tablets for 2014,” he said.
Krzanich also said Intel’s partnership with big data specialist Cloudera shows Intel is committed to build its presence in the enterprise. The partnership will see Intel become Cloudera's largest shareholder, while it will optimise its Hadoop-based software for the Intel architecture as its preferred platform.
Recently, at the Intel Developer Forum in China, the firm delivered a brief preview of its future roadmap for PCs and mobile devices.
This included the disclosure of an upcoming system on a chip (SoC) codenamed Braswell, aimed at mobile devices, along with a version of Android with a 64-bit kernel. The chipmaker also announced systems for the Internet of Things (IoT) based on its Quark and Atom processors.
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