Net income fell 55% QoQ, on a 26% drop in revenue. Additionally, the company did not provide a full guidance range for the second quarter in a row. The only relevant forward looking data point is that the company expects Q2 gross margin percentage to be in the "mid-40", which does not jive with expectations of "high 40s" margins.
Stock down 5% after hours. Sphere: Related Content
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3 comments:
I guess intel isn't fooling anyone!
Come on AMD I'm pullin' for ya!
TD:
To be fair you should have also mentioned the positives.
Intel commented that
-They see the bottom in the PC market and inventory glut eaten up.
-Seeing trend return to normal seasonality
-Expects a flat revenue next quarter (with current quarter) which is positive since typically that is the slowest seasonal quarter. Even Seagate suggested that previous forecasts were perhaps too pessimistic.
More importantly Intel is run well enough to make about 45% of last year's profit even with a 26% drop in revenue. There are not that many companies which will continue to be even marginally profitable with a 26% drop in revenues. Speaks volume about how the semiconductor industry has evolved into a very lean, efficient sector with a sharp focus on core-competency and a business model which can adapt to big changes in the market.
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