Intel released on January 26th its financial results for the last quarter of 2022 and its balance sheet for the financial year. With a turnover down 20% compared to 2021, 2022 will not have made any gifts to the company specializing in semiconductor manufacturing. In the a difficult economic environmentaffected by the collapse of the PC market, Intel can only count on Mobileyeits subsidiary for the design of autonomous driving systems, to raise the bar.
A black year for Intel
Intel knows this its fourth consecutive quarter of decline. The company’s turnover in the last three months amounts to $14 billion, or 32% down compared to the last quarter of 2021. Over the year, Intel raised $63.1 billion, far from the $79 billion raised in 2021. It also presents, for the last quarter, a net loss of $664 million. Figures that contrast sharply with the 4.6 billion dollars of net profits achieved in the same period of the previous year. Despite these challenges, Intel reported net income of $8 billion in 2022, a 60% decline from 2021.
These results (PDF) are explained by a slowdown in its most important sectors. Sales of the “Client Computing Group” and “Data Center and AI” divisions. fell 36% and 33%, respectively, during the rolling year. Only Mobileye and Intel Foundry Services register a significant increase of 59% and 30% compared to the last quarter of 2021. As a result of these revelations, Intel shares are down 9%.
Intel is having a bad time
In a call with investors, Pat Gelsinger, chief executive of the group, said that ” we tripped, it’s true, we have lost market share and momentum “. However, he tried to reassure by specifying that the results of the company should stabilize over the course of the year.
Intel is one such company have taken advantage of the pandemicand new teleworking needs, to grow rapidly. With the return to normal working habits, demand for his services plummeted.
Pat Gelsinger told the news agency Reuters that they” expect it to take place the largest inventory corrections ever seen in the industry “. Adds that ” this will affect the forecast for the first quarter [2023] significantly “. In this sense, Intel decided to do it not sharing his forecast for the rest of the yearrefering to ” the uncertainty of the current context “.
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