In the first quarter, net income improved 2.7 percent to $2.05 billion, or 42 cents a share, while sales climbed 7.2 percent to $13.7 billion.
Intel and its relatively new CEO, Brian Krzanich, are having to make some tough choices as markets change and its business evolves. Essentially, the company is restructuring to kickstart its next growth phase from the PC economy to the IoT economy.The venerable processor maker, the world's largest, on April 19 reported revenue of $13.8 billion, or 54 cents per stock share.The Santa Clara, Calif.-based chip maker also revealed that it will cut 12,000 jobs globally, or 11 percent of its 107,300-person workforce, as the company starts to move away from its longtime business of selling PC processors and gravitate toward developing other types of chips.Go here to read eWEEK's summary of that news. In the first quarter, net income improved 2.7 percent to $2.05 billion, or 42 cents a share, while sales climbed 7.2 percent to $13.7 billion, Intel said. On average, analysts had projected earnings of 37 cents and revenue of $13.8 billion. Second-quarter revenue will be about $13.5 billion, the company said in its financial statement. Analysts estimated $14.2 billion, according to data compiled by Bloomberg.Gross margin, the percentage of sales remaining after deducting the cost of production, is forecast to be about 61 percent in the current quarter, Intel said. That measure of profitability, the only one that Intel projects, has remained above 60 percent annually since 2014 as high-priced, high-margin server chips have become a larger portion of Intel’s overall sales.For the current quarter, the company offered guidance of $13 billion to $14 billion in revenue, slightly below analysts' consensus of $14.2 billion.Intel made a key personnel move, too. CFO Stacy Smith will move to a new role, heading sales, manufacturing and operations, once the company completes a search for a new CFO. Intel said it is is seeking candidates both internally and externally.Intel kept its capital spending outlook the same at $9 billion to $10 billion for this year.Intel also said it would record a pretax restructuring charge of $1.2 billion in the second quarter. The company's stock price was down 2.4 percent in after-hours trading to $31.20 at 2:30 p.m. Pacific time.
- eWeek