Menu
Intel profit slides on costs related to layoffs

Intel profit slides on costs related to layoffs

Sales were up in its data center division but down in client computing

Intel's profit dropped sharply last quarter due to heavy costs from a restructuring announced in April, though sales were up thanks to the company's powerful data center group.

Intel's profit for the quarter, ended July 2, was $1.3 billion, down from $2.7 billion a year earlier, the company announced Wednesday. Revenue climbed 3 percent to $13.5 billion.

Intel said in April that it would axe 12,000 jobs worldwide, or 11 percent of its staff, in a plan to cut costs and focus on growing businesses like server processors and chips for the internet of things.

In the process, it canceled the development of low-power Atom processors and more or less gave up on the smartphone and tablet markets -- areas where it's never done well.

As a result of those changes, Intel said Wednesday it recorded restructuring costs of $1.4 billion, which is what caused its profit last quarter to fall.

Results elsewhere were mixed. Revenue from Intel's data center group, which sells Xeon server chips, were up 5 percent from last year, to $4.0 billion.

However, revenue from its client computing group, which makes chips for PCs and mobile devices, was down 3 percent to $7.3 billion, Intel said.

Its IoT group produced sales of $572 million, up 2 percent year over year.

On an adjusted basis, factoring out the restructuring costs, Intel's earnings came in at $0.59 a share, better than the $0.53 analysts had been expecting. The revenue figure was roughly on target.

“Second-quarter revenue matched our outlook, and profitability was better than we expected," CEO Brian Krzanich said in a statement.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Brand Post

Featured

Slideshows

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

The channel came together for the inaugural Reseller News Emerging Leaders Forum in New Zealand, created to provide a program that identifies, educates and showcases the upcoming talent of the ICT industry. Hosted as a half day event, attendees heard from industry champions as keynoters and panelists talked about future opportunities and leadership paths and joined mentoring sessions with members of the ICT industry Hall of Fame. The forum concluded with 30 Under 30 Tech Awards across areas of Sales, Entrepreneur, Marketing, Management, Technical and Human Resources. Photos by Gino Demeer.

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019
Show Comments