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Intel to Break Down Financial Results from 3 More Segments

Intel Corporation INTC announced on Tuesday that it will revise its financial reporting structure when it reports first quarter earnings scheduled for release on Apr 19, 2016. The revised structure will accommodate certain changes in operating segments.

The company’s restructured operating segments include Client Computing Group (CCG), Data Center Group (DCG), Internet of Things Group (IOTG), Non-Volatile Memory Solutions Group (NSG), Intel Security Group (ISecG), Programmable Solutions Group (PSG) and “All other” (which will include results from the New Technology Group, or NTG among other things.

So the change is basically in breaking out operating results for NSG, ISecG, and PSG.

In December, Intel acquired Silicon Valley based chip maker Altera Corporation for $16.7 billion. Results from Altera’s operations will be reported under PSG. 

Revenue and operating profits from NAND flash memory products will form part of NSG. Previously, the chip maker included results of NSG in the “All other” category.

Furthermore, the company will report performance of its security software business in ISecG. Previously, ISecG formed a part of the “software and services” category.

With these changes in the financial reporting structure, it appears that Intel is trying to showcase the segments that are likely to grow. This seems to be a clever move especially when its PC processor segment is suffering and its attempts to enter the mobile device market have been unsuccessful.

About Intel

Intel is one of the world’s leading semiconductor chip makers offering digital technology products and primary integrated circuits for communications and computing industries. Its major products include Bluetooth chipsets, microprocessors, flash memory, motherboard chipsets, network interface cards, central processing units, and wired and wireless connectivity products.

At present, Intel carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are NVIDIA Corporation NVDA, Mellanox Technologies, Ltd. MLNX and QuickLogic Corporation QUIK as they hold a Zacks Rank #2 (Buy).

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