Feeds

Intel profits plunge 76 per cent

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

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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%

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.