Intel profits plunge 76 per cent
Down 94 per cent if you add in one-off charges
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. ®