Chip maker Intel reported a surprisingly steep decline in second-quarter revenue of $15.3 billion, down 22% from the previous year.
Intel’s Client Computing and Datacenter and AI Groups were largely impacted by continued adverse market conditions; Network and Edge Group and Mobileye achieved record quarterly revenue.
The company reported a net loss of $454 million in the quarter. In the second quarter, the company generated $0.8 billion in cash from operations and paid dividends of $1.5 billion.
“This quarter’s results were below the standards we have set for the company and our shareholders. We must and will do better. The sudden and rapid decline in economic activity was the largest driver, but the shortfall also reflects our own execution issues,” said Pat Gelsinger, Intel CEO. “We are being responsive to changing business conditions, working closely with our customers while remaining laser-focused on our strategy and long-term opportunities. We are embracing this challenging environment to accelerate our transformation.”
“We are taking necessary actions to manage through the current environment, including accelerating the deployment of our smart capital strategy, while reiterating our prior full-year adjusted free cash flow guidance and returning gross margins to our target range by the fourth quarter,” said David Zinsner, Intel CFO. “We remain fully committed to our business strategy, the long-term financial model communicated at our investor meeting and a strong and growing dividend.”
As of July 2022, Intel said it has 128,200 employees compared to 113,700 employees a year ago. The company has $27 billion in cash and short-term investments at the end of the second quarter.