Intel Records Its Worst Quarterly Loss Amid PC Slump
Intel Corp. suffered its largest-ever quarterly loss and said it would remain in the red as it prepares for the market recovering from the sharp fall in personal computer sales that hammered its business.
Sales fell to a level not seen since 2010.
Tweet on Intel Q1’s results
@intel suffered its largest-ever quarterly loss and said it would remain in the red as it prepares for the recovery measures.
Intel’s sales slump translated into a $2.76 billion loss for the first quarter#Intel #semiconductor #chips pic.twitter.com/BOLkGFxLxR— The_Journalbiz (@the_journalbiz) April 28, 2023
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Intel on Thursday posted revenue of $11.7 billion for the first quarter, above estimates from analysts surveyed by FactSet. That marked a 36% decline from the prior-year period.
- Chip maker is cutting costs while pursuing a pricey turnaround effort
Shipments of PCs, which drive a large share of Intel’s revenue, fell 29% year-over-year in the first quarter, according to International Data Corp. figures, extending a slump that began early last year.
Consumers rushed to buy computers, smartphones and other electronics at the beginning of the pandemic, spurred by the shift toward remote learning and working. That reversed last year as people returned to pre pandemic routines.
- Intel’s PC-chip division reported a 38% fall in revenue for the first quarter to $5.8 billion.
“We saw in the quarter an improving situation in the PC market,” Chief Executive Pat Gelsinger said in an interview, adding that the company was making strides in a multiyear effort to return to leadership in the race to make the best-performing chips with the smallest transistors.
Intel’s sales slump translated into a $2.76 billion loss for the first quarter. It was the company’s second loss in a row and eclipses its largest loss of $687 million, booked in the final quarter of 2017. And Intel said it would likely post another loss in the current quarter.
