Intel Reports Biggest Quarterly Loss in its History

Thanks to a restructuring charge and the devaluation of its assets, Intel posted the biggest quarterly loss in its history. But the firm also beat expectations and indicated that the current quarter will be better than expected, and its stock price jumped 9 percent in after-hours trading.

Intel reported a net loss of $16.6 billion on revenues of $13.3 billion for the quarter ending September 30. Those results include $2.8 billion in restructuring charges and $15.9 billion in impairment charges, the latter of which is tied to its devalued assets.

“Our Q3 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,” Intel CEO Pat Gelsinger said. “We delivered revenue above the midpoint of our guidance, and are acting with urgency to position the business for sustainable value creation moving forward. The momentum we are building across our product portfolio to maximize the value of our x86 franchise, combined with the strong interest Intel 18A is attracting from foundry customers, reflects the impact of our actions and the opportunities ahead.”

Intel’s Client Computer Group delivered $7.3 billion in revenues in the quarter, a decline of 7 percent year-over-year (YOY). But its Data Center and AI and Network and Edge business units both saw growth, of 9 and 4 percent, respectively, and delivered $3.3 billion and $1.5 billion in revenues. Intel Foundry, which is reported separately, earned $4.4 billion in revenues, a decline of 8 percent YOY. (Intel Foundry was impacted by $3.1 billion in impairment charges.)

Intel says it has taken significant steps to “right-size” the company. It expects revenue in the current quarter to be as high as $13.4 billion. That’s down $1.6 billion YOY, but well above expectations.