Intel has reported better-than-expected second quarter results as growth in its data centre, memory and Internet-of-Things (IoT) businesses helped offset a challenging PC market.
Revenue declined 5% to $13.2bn in Q2, compared to $13.83bn for the same period last year.
Net income dropped 3% to $2.7bn, or $0.55 per share, compared to $2.8bn, $0.55 per share in the year-ago quarter.
Revenue from the company’s data centre business increased 9.7% to $3.85bn, while client computing group’s revenue dropped 14% to $7.5bn.
Internet of Things group revenue increased 3% to $559m, while revenue from software and services operating segments dropped 3% to $534m.
The company expects third quarter revenue to be $14.3bn, plus or minus $500m and a gross profit margin of 63%, plus or minus a couple of percentage points.
Intel CEO Brian Krzanich said: "Second-quarter results demonstrate the transformation of our business as growth in data center, memory and IoT accounted for more than 70 percent of our operating profit and helped offset a challenging PC market.
"We continue to be confident in our growth strategy and are focused on innovation and execution. 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."
Last month, Intel agreed to buy its rival chip maker Altera for $16.7bn to strengthen its dominance in the market.
