Intel on Thursday posted the biggest quarterly loss in its 56-year history, as the onetime highflying chip maker struggles to turn itself around.
The Silicon Valley company said its loss for the third quarter totaled $16.6 billion, a result of $15.9 billion in charges to reflect lowered valuations of company assets and a $2.8 billion restructuring charge associated with cutting more than 15,000 workers.
Pat Gelsinger, Intel’s chief executive, had ordered the restructuring in August in response to shrinking profit margins caused by the costs of catching rivals in manufacturing technology and little success in the booming market for artificial intelligence chips, among other factors.
Intel’s share price has plunged 60 percent since Mr. Gelsinger became chief executive in February 2021. At a current market value of less than $100 billion, the longtime semiconductor industry leader has recently been discussed as a candidate for a takeover or a breakup.
But Mr. Gelsinger, in prepared remarks, pointed to improving trends in the latest quarter and suggested Intel simply needs time for his turnaround plans to gain traction.
The “results underscore the solid progress we are making against the plan we outlined last quarter to reduce costs, simplify our portfolio and improve organizational efficiency,” he said.
Intel’s total revenue in the period that ended Sept. 30 dropped 6 percent to $13.3 billion, worse than the company’s showing in the second quarter but above the midpoint of its guidance. Intel projected revenue for the current quarter of $13.3 billion to $14.3 billion, well below the $15.4 billion reported in the year-earlier period.
But the results and quarterly guidance were better than some analysts expected, pushing Intel’s stock up more than 12 percent in after-hours trading.
The post Intel Posts $16.6 Billion Quarterly Loss, Its Biggest Ever appeared first on New York Times.
