Intel Corporation (NASDAQ:INTC) Q4 2014 Earnings Conference Call - Final Transcript

Jan 15, 2015 • 05:00 pm ET

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Intel Corporation (NASDAQ:INTC) Q4 2014 Earnings Conference Call - Final Transcript

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Operator
operator

Good day ladies and gentlemen and welcome to the Intel Corporation Fourth Quarter 2014 Earnings Conference Call. Thank you for your patience. We do apologize for the delay. As we were experiencing a technical issue. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instruction) As a reminder, today's conference is being recorded. I would now like to turn the call over to Mark Henninger.

Executive
Mark Henninger

Thank you, Jamie. And welcome everyone to Intel's fourth quarter 2014 earnings conference call. By now, you should have received a copy of our earnings release and the CFO commentary that goes along with it. If you've not received both documents, they are available on our investor website on intc.com.

I'm joined today by Brian Krzanich, our CEO; and Stacy Smith, our Chief Financial Officer. In a moment, we'll hear brief remarks from both of them followed by Q&A.

(Forward-Looking Cautionary Statements)

So with that, let me hand it over to Brian.

Executive
Brian Krzanich

Thanks, Mark. The fourth quarter marked a strong finish to a great year. We began 2014 expecting roughly flat year-over-year revenue and operating income. Instead, the company's full-year revenue grew 6% setting all-time record of $55.9 billion. At the same time, operating income rose 25%. I became CEO, I set two imperatives for the company. First develop a more outside end use markets. To ensure we go to where the markets are headed.

And the second, increase our velocity all peace [ph] and innovation and a purposeful direction. Over the last year we've made meaningful progress against these imperatives, which helped us meet and exceed many of our top goal. I'd like to take a moment to review the year. In the PC Client Group, our goal was to stabilize the PC business, we expected revenue to be down by low single digit percentage, before operating profit to be roughly flat year-over-year. Instead

Executive
Unidentified Speaker

as the year closed with a 4% increase in revenue and 25% increase in operating profit. Our focus on reinventing the computing experience and leading no segment underserved from the low end to high end contributed to these results. We launched Broadwell on the world's first 14 nm manufacturing process. While we did have some start-up challenges that contributing to roughly six months delay, yields have steadily improved. The end result is a family of core and fifth generation core processors. Those are the foundation for the industry's most compelling new designs.

These designs including the finest, lightest and most energy efficient notebooks two-in-one ultrabooks, (inaudible). We began the year with high expectations for the Data Center Group. We said we would capitalize on the growth of Cloud and Big Data by diversifying customer segments and product leadership. We initially forecasted the revenue growth in the low to mid teens and the operating profit growing faster than revenue. We exceeded those high expectations and grew 18%, while operating profit extended by a remarkable 31%.