Feeds

Intel profits plunge 76 per cent

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

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

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%

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.