By Kristin Jones
Intel Corp.'s (INTC) second-quarter profit fell 29% as the chip
maker continued to be hurt by sinking demand for personal
computers.
The company lowered its full-year revenue outlook, now seeing
its sales roughly flat from the previous year. Intel previously
expected sales growth at a low single-digit percentage.
Intel has struggled to come to terms with fizzling demand for
PCs, and its sluggishness in entering the mobile market has
frustrated investors. Chief Executive Brian Krzanich, a company
veteran who was named to the top post in May, has pledged to step
up Intel's push to get its chips into smartphones and tablets.
Mr. Krzanich on Wednesday reiterated the company's priority on
creating products for the ultra-mobile market.
For the latest quarter, Intel reported a profit of $2 billion,
or 39 cents a share, down from $2.83 billion, or 54 cents a share,
a year earlier. Analysts polled by Thomson Reuters were expecting
per-share earnings of 39 cents.
Sales fell 5.1% to $12.8 billion, in line with the $12.4 billion
to $13.4 billion Intel projected in April.
Gross margin, a closely watched figure for Intel and other chip
makers, narrowed to 58.3% from 63.4%.
Sales in the company's PC client group, which makes up most of
the top line, shrank 7.5%, while data-center revenue was roughly
flat. The other Intel architecture segment, which includes mobile
chips, posted 15% lower revenue.
Operating expenses edged up 0.6% to $4.75 billion.
For the current quarter, Intel expects revenue of $13 billion to
$14 billion, bracketing the $13.7 billion expected by analysts.
Shares closed Wednesday at $24.15 and were up seven cents after
hours. Through the close, the stock was up 17% since the start of
the year.
Write to Kristin Jones at kristin.jones@dowjones.com
Order free Annual Report for Intel Corp.
Visit http://djnweurope.ar.wilink.com/?ticker=US4581401001 or
call +44 (0)208 391 6028
