Intel credits strong quarter to Internet of Things, data center growth

Intel published better-than-expected second quarter financial results after the bell on Wednesday.

The tech giant reported a net income of $2.7 billion, or 55 cents per share (statement). Non-GAAP earnings were 55 cents per share on a revenue of $13.2 billion, down five percent from the year prior.

Still, Wall Street was looking for earnings of 50 cents per share with $13.04 billion in revenue.

Intel CEO Brian Krzanich credited the results to growth in three departments -- memory, data centers and the Internet of Things -- altogether of which he noted accounted for more than 70 percent of operating profit.

Those units also made up for continued pitfalls surrounding the PC space.

Data centers accounted for $3.9 billion in revenue, up 10 percent year over year. Intel's department focused on the Internet of Things, the concept of using sensors and other technologies to hook just about anything you can think of into the Web, jumped four percent year over year to $559 million.

On the downward trend, software and services accounted for $534 million in revenue, down three percent year over year, while the client computing group delivered $7.5 billion, down 14 percent annually.

"We expect the launches of Skylake, Microsoft's Windows 10 and new OEM systems will bring excitement to client computing in the second half of 2015," added Krzanich, in prepared remarks.

Skylake, the code name for Intel's sixth-generation Core processor aimed at PCs, is slated to drop during the second half of 2015.

For the current quarter, Wall Street is looking for non-GAAP earnings of 56 cents per share with $14.1 million in revenue.

Intel responded with third quarter revenue guidance of $14.3 billion, plus or minus $500 million. However, Intel warned full year revenue is expected to drop by roughly one percent year over year.

This story originally posted as "Intel CEO credits solid Q2 results to Internet of Things, data center growth" on ZDNet.