Intel released the earnings results from its most recently completed quarter after closing bell tonight. The chip maker posted diluted earnings of 41 cents per share on $12.8 billion in revenue for the first quarter, exactly the numbers analysts had been expecting Intel to report.

Intel Corporation Posts In-Line Earnings Results

In the same quarter a year ago, Intel reported revenue of $12.8 billion and earnings of 38 cents per share.

Key metrics from Intel’s earnings report

Intel reported that its first quarter revenue was flat year over year. Operating income for the first quarter was $2.6 billion, while net income was $2 billion. Basic earnings per share were 42 cents, while gross margin for the quarter was 60.5%.

The chip maker said it generated about $4.4 billion in cash from operations. It also paid out $1.1 billion in dividends to shareholders and bought back 21 million shares of its stock for about $750 million.

Intel’s earnings by segment

As expected, the chip maker’s PC business declined, although growth in the Internet of Things segment and memory business offset the decline in the PC business.

The company’s Client Computing Group saw its revenue fall 16% quarter over quarter and 8% year over year to $7.4 billion. Revenue from Intel’s Data Center Group fell 10% sequentially but rose 19% compared to last year, landing at $3.7 billion.

Revenue from the Internet of Things Group increased 11% compared to last year, rising to $533 million, but fell 10% compared to the previous quarter. Intel’s Software and Services segments recorded revenue of $534 million, a 4% sequential decline and 3% year over year decline.

Intel CEO Brian Krzanich said in a statement, “Year-over-year revenues were flat, with double-digit revenue growth in the data center, IoT and memory businesses offsetting lower than expected demand for business desktop PCs. These results reinforce the importance of continuing to execute our growth strategy.”

Intel provides guidance

For the June quarter, Intel expects revenue to be around $13.2 billion, +/- $500 million. The chip maker expects a gross margin of approximately 62% for the quarter. For the full year, Intel expects revenue to be about flat with last year and gross margin to be around 61%.