Sunday, 17 June, 2018

Intel +4.5% on Q4 beats, data center growth, upside guidance

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Nellie Chapman | 27 January, 2018, 20:43

Brian Krzanich, the CEO of Intel, has pledged to rid the company's CPUs of the Meltdown and Spectre chip architecture security vulnerabilities within the year.

Overall, Intel had a strong quarter, with revenue up eight percent to $17.1 billion, and for the full year, up nine percent to $62.8 billion.

In the coming future, Intel would make necessary changes to their processor architecture to remove the bugs from the roots.

Intel was on a roll, powering past the competition to sell more chips for servers and data centers, until new of the Spectre and Meltdown security attacks surfaced earlier this month.

As ArsTechnica notes, Intel also does not mention in what form the fix will take, such as whether or not the fixes will impact the performance of the chips, or if it will not affect performance at all, and so on.

Krzanich said he appointed some of the best minds at Intel to deal with the issue.

The results saw Intel's share price jump as much as five percent, after falling down almost 10 percent in the days after the vulnerabilities were revealed. Excluding McAfee, fourth quarter revenue grew 8 percent year over year. Personal computer sales remained Intel's biggest revenue generator, with $9 billion in sales, but that amount slipped by 2 percent from the fourth quarter of 2016.

Intel's shares rose 7 percent on Friday to their highest in nearly two decades, after strong fourth-quarter results offered the clearest sign yet that its years-long effort to shift away from a slowing PC business was paying off.

The company's data-centric operations are obviously proceeding well, with its revenue in this space up 21 per cent in the fourth quarter, compared to an overall eight per cent rise. Now, Intel says that it will include actual hardware fixes in silicon to address Meltdown and Spectre, in future processor releases.

Security has always been a priority for Intel, Krzanich said.

The emergence of Spectre and Meltdown caused worldwide concern among technology users and led to at least three class-action lawsuits. Underneath the surface these results have shown a few more interesting things about the company as well as the industry it exists in. The company has generated a lot of not-so-great headlines in recent weeks over major security vulnerabilities in its processors.

The letter from the committee also asked a series of nine very pointed questions, starting with why the embargo was imposed, what companies proposed the embargo and whether US-CERT or CERT/CC were informed of the vulnerabilities. And programmable solutions revenue was $568 million, up 35 percent. But after performance problems with patches it issued, Intel was forced to recommend holding off on installing them for now.