Intel reported its second-quarter financial results for 2024 with total revenue of $12.833 billion, a decrease of 1% compared to the same quarter in the previous year. The net loss according to GAAP accounting was $1.654 billion.
David Zinsner, the CFO of Intel, stated that the financial figures for the past quarter were impacted by decreased profits from the expenses related to increasing production capacity of AI PCs, high expenses in non-core business groups, and underutilized asset impairments.
Revenue from Intel’s product groups increased by 4% to $11.799 billion, mainly driven by the Client group, while Intel Foundry business revenue increased to $4.320 billion but incurred a specific loss of $2.830 billion. Other business groups (Altera, Mobileye) saw a decrease in revenue to $968 million.
Pat Gelsinger, the CEO of Intel, mentioned that the operational results were disappointing despite the introduction of new products and manufacturing improvements according to the plan. The second half of the year posed greater challenges than anticipated, leading the company to revise its operational plans. The transition to IDM 2.0 continues to progress to support Intel 18A, aiming to regain its position as a technology leader.
Intel announced a restructuring plan to lay off more than 15% of employees by 2024, reduce long-term asset investments (CapEx) by 20% from the original plan. Additionally, the company will suspend regular dividend payments to shareholders starting from the fourth quarter of this year to preserve cash flow.
TLDR: Intel reported a decline in revenue and net loss in the second quarter of 2024, attributed to various factors including increased production expenses and underutilized assets. The company plans to implement a restructuring strategy to improve its financial position and focus on operational efficiency.
Source: Intel
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