Intel Reports Revenue Decline in Second Quarter
Its second-quarter GAAP (Generally Accepted Accounting Principles) loss per share was 0.38 dollars. Non-GAAP earnings per share was 0.02 dollars.
The company's GAAP quarter net loss was 1.6 billion dollars, compared with a net income 1.5 billion dollars in the second quarter of 2023. Its non-GAAP quarter net income was 0.1 billion dollars, down 85 percent from 0.5 billion dollars a year ago.
Intel forecast the third-quarter revenue of 12.5 billion to 13.5 billion dollars, with the GAAP loss per share at 0.24 dollars.
Intel said it expected to reduce headcount by greater than 15 percent with the majority completed by the end of 2024.
"Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones. Second-half trends are more challenging than we previously expected," said Pat Gelsinger, Intel CEO.
He said that the company is leveraging new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating IDM 2.0 transformation.
"Second-quarter results were impacted by gross margin headwinds from the accelerated ramp of our AI PC product, higher than typical charges related to non-core businesses and the impact from unused capacity," said David Zinsner, Intel chief financial officer. "By implementing our spending reductions, we are taking proactive steps to improve our profits and strengthen our balance sheet."
Intel announced a series of initiatives to create a sustainable financial engine, including structural and operating realignment, headcount reductions, and operating expense and capital expenditure reductions of more than 10 billion dollars in 2025 compared to previous estimates.
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