Feeds

Intel profits plunge 76 per cent

Down 94 per cent if you add in one-off charges

  • alert
  • submit to reddit

Security for virtualized datacentres

Intel's earnings plummeted last quarter, its second, falling 76 per cent on last year's Q2 to $854 million (12 cents a share). That figure is 22 per cent down on Q1.

Still, Wall Street had been expecting earnings of ten cents a share, according to First Call's analyst poll, allowing Intel to at least claim that it had beaten the Street. Mind you, one of those two extra cents a share came from a tax revision, so Intel didn't actually beat expectations by all that much.

And factor in Intel's spending and one-off items, and its quarterly income fell to just $196 million, down to nearly a half of Q2 2000's figure, and 60 per cent below Q1 2001. Earnings on this level fall to a meagre three cents a share.

Driving down the quarter's bottom line were a $123 million acquisition charge and a whopping $594 million goodwill write-off.

The chip giant's revenues for the quarter fell 24 per cent year-on-year and five per cent quarter-on-quarter to $6.3 billion.

As with its arch-rival, AMD, last week, Intel was hit hard by "soft" Flash memory and communications chip sales. The company noted that CPU sales were up, but there's a caveat: the increase was in volumes, not revenue, so clearly while the company's price cuts have driven up sales, they haven't boosted shipments sufficiently to offset the revenue lost to lower prices.

Looking ahead, the company said it expects Q3 revenue to remain static at between $6.2 billion and $6.3 billion as gross margins match or fall below Q2's 48 per cent. ®

Related Stories

Intel: desktop Pentium III to die before year-end
AMD Q2 sales fall 16%

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.