Intel posted first quarter revenue of nearly $20 billion on Thursday, a year-over-year increase of 23% despite the impact of a COVID-19 pandemic that now threatens a global recession.
CEO Bob Swan called the chipmaker’s performance “a testament to our team’s focus on safeguarding employees, supporting our supply chain partners and delivering for our customers during this unprecedented challenge.”
Data-centric revenue grew 34% while PC revenues grew 14%. Cloud service provider revenue grew 53% year-over-year. He noted on a call with analysts that while cloud apps and video collaboration were recently considered a convenience, they are now “indispensable” with COVID-19.
Technology is “more essential now that it has ever been,” Swan said. “I am confident we will emerge from this situation an even stronger company.”
Operating income in the first quarter was $7.3 billion, up from $4.5 billion a year earlier. The operating profit margin was 38%.
Intel was able to keep greater than 90% on-time delivery at its factories during the pandemic.
The outlook for the second quarter calls for revenues of $18.5 billion, an increase of 12% over the same quarter last year. Intel expects revenues from the auto, industrial and retail sectors to be down generally because of the prospect of a global recession. Similar to other large companies, Intel is not providing full year guidance.
Intel stock closed down Thursday nearly 2% at $59.04.