Intel shareholders were not expecting such negative results. And it is that despite Pat Gelsinger is gradually managing to straighten the course of the company, at the moment the business figures do not seem to give good news to the American multinational. In what has been the presentation of results for the last quarter, the chipmaker has declared losses in practically all its business divisions, signing a 22% drop in revenue compared to last year.
The situation is worse if what is examined is their net income, where the chipera is left no less than 109%, which is equivalent to stopping “putting in the box” 500 million dollars, despite the fact that in total the company has reported revenues of 15,300 million.
As for its main business divisions, the end customer area reported revenues of 7,700 million dollars, 25% less than last year; the data center and artificial intelligence (AI) group posted revenue of $4.6 billion, down 16%, with only the network and edge group seeing positive growth.
Of the company’s smaller divisions, MobileEye was the standout, posting 41% net growth and revenue of $460 million. On the opposite side we find Intel Foundry Services, declaring a decrease in its business of no less than 54% and revenues of 122 million. Finally, its graphics cards area (Accelerated Computing Systems and Graphics Group) presented a modest growth of 5%.
In presenting these results, Intel’s CEO acknowledged that “this quarter’s results were below the standards we have set for the company and our shareholders.” He promised that yes purpose of amendment and assured that «we must do it and we will do it better. The sudden and rapid decline in economic activity was the biggest driver of these results, but the shortfall also reflects our own execution problems. We are responding to changing business conditions, working closely with our clients while staying focused on our long-term strategy and opportunities. We are embracing this challenging environment to accelerate our transformation.”
In response to some of the questions raised by investors, Gelsinger explained how since becoming president of the company, Intel has already abandoned six business units that were not performing as they should (the latest Intel Optane) and that at the same time , the company continues to focus on reducing costs and optimizing operations.
“We are reducing core spending in 2022 and will look to take additional steps in the second half of the year. Importantly, spending discipline is not weighing on the strategy, and we remain firmly on track to achieve process performance parity in 2024 and unquestioned leadership in 2025. This goal is our true guide »he assured.