[caption id="attachment_85376" align="aligncenter" width="720"] Source: Company reports/Coresight Research[/caption]   1Q19 Results Intel reported 1Q19 revenues of $16.06 billion, flat year over year and in line with the consensus estimate. Adjusted EPS was $0.89, up 1.8% and beating consensus by $0.02. GAAP EPS. Which includes the amortization of intangibles, the marking to market of equity securities and the associated tax effects, was $0.87, compared to $0.93 in the year-ago quarter. Performance by Segment

• PC-centric revenues (what the company calls the Client Computing Group) were $8.6 billion, up 4.5%, owing to a strong mix of higher-performance products and strength in gaming, large commercial products and modems. The company commented that its first processor using 10nm technology, code named Ice Lake, remains on track for shipment in volume during the 2019 holiday season.
• Data-centric revenues were $7.4 billion, down 4.4%.
  • The Data Center Group (DCG, which includes products for the cloud, enterprise, and communications infrastructure) reported revenues of $4.9 billion, down 6.3%.
    • Revenues in the cloud segment grew 5%.
    • Revenues in the communications service-provider segment declined 4%.
    • Revenues in the enterprise and government segment declined 21%.
  • Revenues in the IoT group were $910 million, up 8.3%.
  • Mobileye reported revenues of $209 million, up 38.4%.
  • Revenue in the non-volatile memory segment was $915 million, down 12.0% in a challenging pricing environment.
  • Revenue in the Programmable Solutions Group was $486 million, down 2.4%.

Details from the Quarter Management commented that results in the quarter were better than expected in January and that the company shipped a strong mix of high-performance products while controlling spending despite ramping new chips with 10n feature sizes and challenging pricing on NAND memories. While management expects market conditions to improve in the second half of the year, it is taking a more cautious view, which is reflected in its guidance. New products introduced in the quarter include:

• The second-generation Xeon Scalable processor family with an integrated deep learning boost.
• More than 50 workload-optimized Xeon processors.
• A 56-core, 12 memory-channel Xeon Platinum 9200 processor.
• The new Agilex line of field programmable gate arrays (FPGAs) that use 10nm chip technology.

On April 16, Intel announced its intention to exit the 5G smartphone modem business, which coincided with Apple and Qualcomm signing a licensing agreement and agreeing to drop all litigation. At the recent Mobile World congress, Intel announced several 5G products under development, including an FPGA acceleration card and a SoC (system on a chip) for use in 5G base stations. Intel hopes to gain 40% of the base station market by 2022. Implications for Retail New technologies such as new, faster processors, processors with embedded AI engines and technologies such as 5G wireless and IoT all enable retailers to offer better, more personalized services and experiences. Outlook Intel offered the following guidance for Q2:

• Revenues of $15.6 billion, down 3%.
• Adjusted EPS of $0.89 (below the $1.01 consensus) and GAAP EPS of $0.83.

The company offered the following updated guidance for the full year:

• Revenues of $69.0 billion, down 3% year over year and down from $71.5 billion previously.
  • The company now expects DCG revenues to be down by the low single digits due to a tough comparison, continued China weakness and inventory and capacity absorption.
  • The growth forecast for the PC-centric segment remains in the low single digits.
• Adjusted EPS of $4.35 (down 5%) and GAAP EPS of $4.14.