Intel records a loss larger than quarterly sales… Restructuring and depreciation costs are the main causes.

Because Intel announced its restructuring plan, there were expectations that Intel’s quarterly performance would be poor. It is true that it is difficult to see things as rosy when the company lost $16.6 billion in a quarter that generated $13.3 billion in sales.

The positive news is that investors are satisfied with Intel’s financial outlook, which is expected to exceed Wall Street expectations.

Last August, Intel said it planned to lay off thousands of employees and cut $10 billion in costs in a restructuring effort. Most of this loss was due to a deficit in accounting processing. This is due to restructuring costs of $2.8 billion and depreciation costs of $15.9 billion related to equipment used in the Intel 7 manufacturing process. If you look at the so-called Non-GAAP, Intel’s loss during the third quarter of 2024 is calculated to be $2 billion.

Client Computing Group, a company of great interest to investors, recorded sales of $7.3 billion in the quarter. This is a 7% decrease compared to the previous year. Intel announced, “Intel remains the leader in the AI ​​PC sector and plans to ship more than 100 million AI PCs by the end of 2025.”

Intel CEO Pat Gelsinger said in a statement that the company was making “solid progress” against its plans and emphasized that its 18A manufacturing process, which it is pursuing to strengthen its foundry business, is receiving “significant interest.”

After the market closed, Intel’s stock price showed an upward trend. This is because Intel expects fourth quarter sales to be between $13.3 billion and $14.3 billion. This figure is higher than third quarter sales and exceeds Wall Street’s expectations. This suggests that Intel and the PC market have turned to recovery.
editor@itworld.co.kr