Intel Corporation today reported first-quarter revenue of $12.8 billion, operating income of $2.5 billion, net income of $1.9 billion and EPS of 38 cents. The company generated approximately $3.5 billion in cash from operations, paid dividends of $1.1 billion, and used $545 million to repurchase 22 million shares of stock.

"In the first quarter we saw solid growth in the data center, signs of improvement in the PC business, and we shipped 5 million tablet processors, making strong progress on our goal of 40 million tablets for 2014," said Intel CEO Brian Krzanich. "Additionally, we demonstrated our further commitment to grow in the enterprise with a strategic technology and business collaboration with Cloudera, we introduced our second-generation LTE platform with CAT6 and other advanced features, and we shipped our first Quark products for the Internet of Things."

Q1 Key Business Unit Trends

• PC Client Group revenue of $7.9 billion, down 8 percent sequentially and down 1 percent year-over-year.
• Data Center Group revenue of $3.1 billion, down 5 percent sequentially and up 11 percent year-over-year.
• Internet of Things Group revenue of $482 million, down 10 percent sequentially and up 32 percent year-over-year.
• Mobile and Communications Group revenue of $156 million, down 52 percent sequentially and down 61 percent year-over-year.
• Software and services operating segments revenue of $553 million, down 6 percent sequentially and up 6 percent year-over-year.

Business Outlook
Intel's Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures, strategic investments and other significant transactions that may be completed after April 15.

Q2 2014

• Revenue: $13.0 billion, plus or minus $500 million.
• Gross margin percentage: 63 percent, plus or minus a couple of percentage points.
• R&D plus MG&A spending: approximately $4.8 billion.
• Restructuring and asset impairment charges: approximately $100 million.
• Amortization of acquisition-related intangibles: approximately $75 million.
• Impact of equity investments and interest and other: approximately $75 million.
• Depreciation: approximately $1.9 billion.

Full-Year 2014

• Revenue: approximately flat, unchanged from prior expectations.
• Gross margin percentage: 61 percent, plus or minus a few percentage points, 1 percentage point higher than prior expectations.
• R&D plus MG&A spending: $18.9 billion, plus or minus $200 million, higher than prior expectations of $18.6 billion.
• Amortization of acquisition-related intangibles: approximately $300 million, unchanged from prior expectations.
• Depreciation: approximately $7.4 billion, unchanged from prior expectations.
• Tax rate: approximately 27 percent for each of the remaining quarters of the year.
• Full-year capital spending: $11.0 billion, plus or minus $500 million, unchanged from prior expectations.