This past quarter, Intel seems to have turned things around with strong growth in its Data Center Group (DCG) and Internet of Things (IoT) Group.

However, the company disappointed with its fourth-quarter forecast of $15.7 billion. The company's stock was down 6 percent at $35.51 at press time.

Intel had predicted that data center and IoT products would lead its rebound, and that seems to be coming true, as those sectors accounted for more than a quarter of its revenue.

“Q3 was an outstanding quarter which produced records in a number of product lines and serves as evidence of our transformation to a company that powers the cloud of billions of smart connected devices,” said Intel’s CEO Brian Krzanich in the company’s earnings call yesterday.

In April, Intel had announced layoffs of up to 12,000 as it adjusted to the new world of IoT and the cloud.

Intel’s DCG reported third-quarter revenues of $4.5 billion, up from 13 percent from second-quarter and up 10 percent year-over-year. Sales for its IoT group were $689 million, up 19 percent year-over-year.

Intel Security showed 6 percent growth year-over-year, with revenues of $537 million. (The security business is in process of being spun out in a sale to private equity firm TPG.)

Overall, the company reported third-quarter GAAP revenue of $15.8 billion, up 9 percent from $14.5 billion in the same quarter last year.

Net income was $3.4 billion, or 69 cents per share, up 9 percent from last year’s $3.1 billion, or 64 cents per share.

Earnings call transcript provided by Seeking Alpha.