Intel exceeds expectations thanks to tablet shipments boost

The US giant sees its revenue growth reach six per cent year over year

Intel has announced a better than expected set of financial results for its last fiscal year, thanks to a boost in its tablet shipments.

For its full year ending 28 December 2014, Intel's revenue reached $55.9bn (£36.73bn), with revenue growth of six per cent year over year. The firm recorded net income of $11.7bn, an increase of 18 per cent year over year and operating income of $15.3bn, up 20 per cent year over year.

This marks a positive step from its previous year's fiscal results, which saw its revenue slump by one per cent annually to $52.7bn and net income fall by 13 per cent to $9.6bn. Following these results, the US giant predicted its sales for 2014 will be "approximately flat".

Intel exceeded its target of 40 million tablet shipments, hitting the 46 million mark, although this growth incurred large start-up costs.

For Q4, Intel's PC client group saw revenue rise three per cent, year over year, to $8.9bn and its Datacentre group revenue was up 25 per cent, year over year, to $4.1bn.

Brian Krzanich, Intel's chief executive, said: "The fourth quarter was a strong finish to a record year. We met or exceeded several important goals: reinvigorated the PC business, grew the datacentre business, established a footprint in tablets, and drove growth and innovation in new areas.

"There is more to do in 2015. We'll improve our profitability in mobile, and keep Intel focused on the next wave of computing," he commented.

But despite these positive financial results, Intel was circumspect for its first quarter of 2015, anticipating revenue to decline seven per cent over its last quarter in 2014 to $13.7bn. It expects revenue growth to be in the mid-single-digit percentage points for 2015.

Following the announcement of the results, Intel's shares fell 2.5 per cent but have performed well over the past 12 months, climbing 42 per cent.