Intel’s sales were lower than expected last quarter, in part due to lower PC demand. Sales of Intel’s consumer division fell 25 percent. The company is working to lower its earnings and revenue forecast for the remainder of 2022.
The last quarter Intel’s revenue fell to $15.3 billion, 22 percent less than the same period in 2021. The chip maker says this is due to disappointing results from its customer computing and data center and artificial intelligence divisions, which focus on consumer and HPC products, respectively. Those industries were hit last quarter by “unfavorable market conditions,” the company wrote. The Network and Edge division and MobileEye, an Intel subsidiary of self-driving cars, have achieved record sales, according to Intel.
Net profit also declined in the last quarter. starting from Calculated results according to yawningPrinciples, the company lost $450 million last quarter. The non-GAAP results came in with a profit of $1.2 billion. This loss in GAAP scores is due in part to inventory holdings for future product releases, which are subject to this US Generally Accepted Accounting Principles considered cost. Intel also lost $155 million expanding its plumbing division to produce chips for other companies.
Intel also contributed to write off $559 million for its Optane division. At Intel’s quarterly results presentation, CEO Pat Gelsinger announced that the company will cease production of these memory products. The company indicates that it will phase out its Optane activities in the near future. Tweakers posted on Friday Back story about Optane’s ending And why this is not a surprise.
For the next quarter, Intel expects revenue of between $15 and $16 billion, where it had previously forecast $19.2 billion. For the full year, the company expects revenue of $65 billion to $68 billion, down as much as 13 percent from previous forecasts. The company expects this to be the low point, and expects margins to rise again in the coming quarters. The company is also looking at ways to reduce spending in the short term. Plans to build new chip plants in the US and Europe do not fall under this, according to the company.
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