Intel reports the highest quarterly loss in the history of the company

Intel reported first-quarter results yesterday that showed a 133% annual reduction in its earnings per share. Revenue declined nearly 36% year over year to around $11.7 billion.

The loss per share and sales were comparatively better than soft Wall Street anticipations.

For the second quarter, Intel anticipates losing 4 cents per share on an income of $12 billion. That forecast is shy of analyst estimations for earnings of 1 cent per share on $11.75 billion in sales.

In the first quarter, Intel swung to an overall loss of $2.8 billion, which is 66 cents per share, from an overall profit of $8.1 billion ($1.98 per share), in 2022.

Excluding the impact of inventory restructuring, the latest change to employee stock options, and other charges regarding acquisition, Intel said it lost 4 cents per share, which was a comparatively narrower loss than analysts had anticipated.

Revenue declined to $11.7 billion from $18.4 billion in the previous year.

It is the fifth successive quarter of falling sales for the company and the second successive quarter of losses. It is also the largest quarterly loss of the company of all time, beating out the last quarter of 2017, when Intel lost $687 million.

The stock of Intel is up over 9% till now in 2023, but down by more than 35% since this time in 2022.

CEO of the Company, Patrick Gelsinger, said, “We still have more work to do as we reestablish process, product, and cost leadership, but we continue to provide proof points each quarter.”

Gelsinger added, “We are seeing increasing stability in the PC market with inventory corrections largely proceeding as we had expected. Server and networking markets have yet to reach their bottoms as cloud and enterprise remain weak.” 

Intel finance chief David Zinsner said, “Maybe the best way to describe it is I think for the back half of the year, we feel like we’ll be comfortably in the 40s from a gross margin perspective.”