The Intel headquarters in Santa Clara, California, USA, on Wednesday, April 23, 2025. Intel Corp. should publish profit numbers on April 24th.
David Paul Morris | Bloomberg | Getty pictures
Intel On Thursday, the results reported in the first quarter in which the analysts' estimates were exceeded, while they showed disappointing guidelines and announced plans to start operating and investing costs next year, the first under CEO LIP-BU TAN. The share fell over 5%in extended trade.
This is how the company did it compared to LSEG consensus estimates:
- EPS: 13 cents, adjusted compared to 1 cent
- Revenue: $ 12.67 billion compared to $ 12.3 billion
Intel expects sales for the current quarter of 11.8 billion US dollars to the focus of the area, which is lower under an average analyst estimate of $ 12.82 billion. The company said that the profit will be after a profit, while analysts were looking for 6 cents per share.
Intel said that his leadership reflected an increased uncertainty in the second quarter, which is due to the macro environment.
In the first quarter, Intel reported a net loss of $ 800 million or 19 cents per share due to higher sales costs and a few writowns. This is compared to a net profit of 2.7 billion US dollars or 63 cents per share last year.
It has been the first result report of the chipmaker since Tan as CEO in March, after Pat Gelsinger resigned in December under pressure from board members and investors. The inability of the company's inability to competive effectively in artificial intelligence and to draw their efforts in the manufacture of semiconductors for other companies, including competitors, was emphasized.
“The first quarter was a step in the right direction, but there is no quick corrections if we work to gain market shares again and to promote sustainable growth,” said Tan in a statement.
Intel said on Thursday that it is planning to reduce the operating and investment costs and remove management layers in order to become more efficient. The company said that this year was expected to have 17 billion US dollars of operational expenses, which is due to an earlier goal of $ 17.5 billion and that it is aimed at $ 18 billion in the amount of $ 18 billion in 2025, compared to an earlier goal of $ 20 billion.
Intel said that there was no restructuring costs in his instructions. CFO David Zinsner Kristina Partsinevelos from CNBC said that the reduction in operating costs would include job cuts, especially for managers, but that Intel has not yet completed a number of cuts.
“There is no way that these critical changes will reduce the size of our workforce,” Tan said in a memo to employees published by Intel on his website. He said that the cuts would begin this quarter.
Intel investors hope NvidiaWhich dominates the rapidly growing sector.
Tan has already started to shape his team, and named the networking boss Sachin Katti as Chief Technology Officer and head of the company's AI last week. Tan said in a memo on Thursday that Intel employees had to work in the office four days a week by September.
The Intel data center group achieved sales of $ 4.1 billion, which rose by 8% compared to the previous year. Intel said that his network and Edge Computing group previously led by Katti summarized it into its data center organization.
The other big business of the company, chips for PCs, is reported under the Client Computing Group and fell 8% annually to 7.6 billion US dollars.
Intel's burgeoning foundry business reported sales of 4.7 billion US dollars, although most of the sales from the other Intel departments come to the production of its chips.
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