Telecom News Hubb
Advertisement
  • Home
  • News
  • Telecom
  • Contact us
No Result
View All Result
  • Home
  • News
  • Telecom
  • Contact us
No Result
View All Result
Telecom News Hubb
No Result
View All Result
Home News

Intel’s revenue slumped 32% in the last quarter

admin by admin
January 27, 2023
in News


Intel posted some grim numbers in its most recent financials, showing big drops in its Q4 and full year 2022 revenues.

Intel’s Q4 2022 revenue came in at $14.0 billion which was down 32% YoY, while gross margin was 39.2%, down from 53.6% YoY. Revenue for the full year clocked in at $63.1 billion, down 20% YoY.

In terms of where the leaks are coming from, Intel’s Client Computing Group generated $6.6 billion in revenue (down 36% YoY in Q4), while the Data Centre and AI division made $4.3 billion (down 33%), and the Network and Edge unit scooped up $2.1 billion, which was down a less devastating 1%.

Intel’s shares are reported to have dropped 9.5% in trading following the news. Despite these grim numbers, Intel was keen to put a positive spin on things:

“Despite the economic and market headwinds, we continued to make good progress on our strategic transformation in Q4, including advancing our product roadmap and improving our operational structure and processes to drive efficiencies while delivering at the low-end of our guided range,” said Pat Gelsinger, Intel CEO. “In 2023, we will continue to navigate the short-term challenges while striving to meet our long-term commitments, including delivering leadership products anchored on open and secure platforms, powered by at-scale manufacturing and supercharged by our incredible team.”

intel q4 2022

It is forecasting 2023 Q1 revenue of $10.5 billion to $11.5 billion, but is declining to make a full year forecast. In a Q and A during the earnings call, David Zinsner Corporate Vice President, Investor Relations said “We’re trying to avoid guiding beyond the first quarter given the murkiness. I would just say we are very focused on the appropriate level of investment necessary for the long-term strategy of IDM 2.0, while being very thoughtful around how much CapEx we spend to manage our free cash flow.

He later added: “We’re a high fixed cost model. So we suffer the consequence of that, obviously, when revenue is declining, but we also get the benefit when revenue is expanding. And so what will — what is currently a headwind does turn to a tailwind as the business recovers.”

In terms of what’s behind the decline, Reuters reported that Chief Executive Pat Gelsinger told investors on a conference call that the firm has been losing market share in the data centre market, presumably to AMD. “We stumbled, right, we lost share, we lost momentum. We think that stabilizes this year.”

But many of the US tech giants are having hard time at the moment and are shedding staff. There are probably a few main factors driving this. The cost of living crisis and general economic gloominess experienced last year (which doesn’t look like it’s going away anytime soon) effected all manor of sectors and businesses no matter how big or small.

Tech firms in particular though experienced something of a boom during the pandemic as people snapped up devices and services that might make being locked indoors slightly more bearable, and offices around the world suddenly had to distribute themselves into everyone’s homes to continue operating.

Intel provides the processors for a huge array of devices – and perhaps now the lockdowns are all over (unless you’re in China) this represents something of a correction for that boom. But for Intel, which in 2022 announced a $30 billion investment with Brookfield to ramp up its chip making capabilities in the US, it’s a particularly tricky time for such a huge slump in revenue.

Get the latest news straight to your inbox. Register for the Telecoms.com newsletter here.



Source link

Previous Post

Three network trends impacting the wireless workforce, according to Corning

Next Post

Britney Spears Asks Fans for ‘Privacy’ After Wellness Check

Next Post

Britney Spears Asks Fans for 'Privacy' After Wellness Check

Recommended

How to Move More Clients to the Cloud

December 13, 2022

Vodafone Spain to launch 5G FWA technology by end-November

November 24, 2022

How will the growth of cloud gaming impact telecom providers?

December 8, 2022

Former Worker Shares The Store-bought Cold Foam Dunkin’ Uses

January 12, 2023

China Unicom Chongqing Takes the Lead in the Trial Commercial Use of Huawei OptiX Alps-WDM Solution

February 25, 2023

Don't miss it

Telecom

Customer Pays $42 for 10-Piece Wing Combo

March 26, 2023
News

What $140bn of network gets you – AT&T proclaims five-year milestones

March 26, 2023
News

Educational Programs to Enhance Diversity in the Cybersecurity Profession

March 26, 2023
News

Microsoft fixes reversible screenshot vulnerability on Windows

March 26, 2023
Telecom

Remote Worker Says She was ‘Cold-Called’ on Microsoft Teams

March 25, 2023
News

Test and Measurement: Getting a boost from HPUE

March 25, 2023

Telecomm-white

© 2022 Telecomm News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • News
  • Telecom
  • Contact us

Newsletter Sign Up

No Result
View All Result
  • Home
  • News
  • Telecom
  • Contact us

© 2022 Telecomm News Hubb All rights reserved.