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Intel Q2 Profit Plunges

Intel Corp. has posted a lower second quarter earnings of USD 885 million, or 15 cents a share, compared with USD 2.04 billion, or 33 cents a share a year-ago. Revenue for the quarter also fell to USD 8 billion, from USD 9.23 billion in the year ago quarter.

Excluding stock-based compensation, Intel said it earned USD 1.12 billion, or 19 cents per share, compared with USD 2.04 billion a year earlier.

Analysts on average had expected the company to USD 808 billion, or 13 cents a share, on revenue of USD 8.23 billion, according to Reuters Estimates.

For the forthcoming fourth quarter, the company expects the sales for the third quarter to be between USD 8.3 billion and USD 8.9 billion, lower than the average analysts forecast of USD 9.03 billion.

Intel said sequential revenue in all of the company’s major regions was below normal seasonal patterns. Microprocessor unit sales were below seasonal patterns as customers reduced their processor inventory levels to seasonally appropriate levels in a highly competitive pricing environment.

Amid fierce competition from rival Advanced Micro Devices, Intel has suffered a setback, but with the launch of new chips, analysts opined that the company may be poised for a comeback.


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