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Intel CEO Admits Q2 Results “Disappointing, Below The Standards We Set”

Intel has delivered lucklustre June quarter results, with CEO Pat Gelsinger admitting the financials were “below the standards we have set for the company, and below the commitments we have made to our shareholders.”

The company saw second quarter revenue fall 22 per cent to A$21.85 billion, well below the Wall Street estimates of A$25.7 billion.

Per-share profit (excluding some items) was A0.41, Intel said, compared to estimations of A0.99. Intel’s data-centre division brought in A$6.58 billion for the quarter, below the expected A$8.63 billion.

Intel’s PC-chip unit saw sales plummet 25 per cent to A$11 billion.

Third quarter revenue will be even lower, at A$21.4 billion, with the company forced to revise its full-year outlook.

Gelsinger said revenue this year will be as much as A$15.7 billion less than projected.

“The sudden and rapid decline in economic activity was the largest driver of the shortfall, but Q2 also reflected our own execution issues in areas like product design, DCAI and the ramp of AXG offerings,” Gelsinger said.

“We have an obligation to remain vigilant and to respond to the changing business conditions, while not losing sight of our long-term goals and opportunities.

“We will look to do both by adjusting and refocusing our spending levels in the near term, at the same time as we accelerate the deployment of our smart capital strategy and improve product execution.”

Gelsinger said Intel would be “clear-eyed” when looking at the upcoming struggles.

“We are planning for volatility as the world adjusts to the end of a 2-plus-year pandemic and the unprecedented stimulus governments used to fight it,” he told shareholders.

“Across the economy, supply chain issues have both limited the ability to meet demand in some areas and driven inventory well above normal levels in others.

“We are prepared to manage through a slowdown typical of the normal cycles the semiconductor industry has experienced over the last 50 years. While the depth and duration are still difficult to predict, we have a proven track record of being able to adjust and succeed in any environment.”

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