Wednesday September 18, 2019
Home Lead Story Intel Stock F...

Intel Stock Fell as Chip Maker cut Revenue Forecast

Collectively, Intel’s data-centric businesses declined 5 per cent (YoY) in the first quarter

0
//
Intel
This Jan. 1, 2018, file photo shows an Intel logo on the box containing an HP desktop computer on sale at a Costco in Pittsburgh. VOA

Intel stock plunged nearly 7 per cent on slashed revenue forecast for the full year and a flat first-quarter revenue at $16.1 billion.

Its data-centric revenue declined five per cent while PC-centric revenue grew 4 per cent in the first quarter of 2019, the chip-maker said in a statement on Thursday.

Net income was $4 billion — down from the same quarter last year which reported $4.5 billion.

The company expects full-year revenue of $69 billion, down from the January guidance.

“Results for the first quarter were slightly higher than our January expectations. Looking ahead, we’re taking a more cautious view of the year, although we expect market conditions to improve in the second half,” said Bob Swan, Intel CEO.

The company said it shipped a strong mix of high-performance products and continued spending discipline while ramping 10nm chip and managing a challenging NAND flash memory pricing environment.

intel
intel technology. Pixabay

“We aim to capitalize on key technology inflections that set us up to play a larger role in our customers’ success, while improving returns for our owners,” said Swan.

Intel said last week ita¿s exiting the 5G smartphone market after determining there was “no clear path to profitability”.

In the first quarter, the company generated approximately $5 billion in cash from operations, paid dividends of $1.4 billion and used $2.5 billion to repurchase 49 million shares of stock.

The PC-centric business (CCG) was up in the first quarter due to a strong mix of Intel’s higher performance products and strength in gaming, large commercial and modem.

Also Read- Google Workers Can Now Report Harassment on New Website

“Intel’s first high-volume 10nm processor, code-named Ice Lake, remains on track to be in volume systems on retail shelves for the 2019 holiday selling season,” said the company.

Collectively, Intel’s data-centric businesses declined 5 per cent (YoY) in the first quarter.

In the Data Center Group (DCG), the cloud segment grew 5 per cent while the communications service provider segment declined 4 per cent and enterprise and government revenue declined 21 per cent. (IANS)

Next Story

Governors to Shut Down Counties from September 16 over Revenue Row

The County Governments will not be able to pay salaries at end of this month going forward

0
Governors, Counties, Revenue
File image of Council of Governors Chairman Wycliffe Oparanya.

BY GEOFFREY ISAYA

All county operations will be paralysed from Monday, September 16 if the stalemate over the Division of Revenue Bill 2019 is not resolved. Counties.

In a statement issued on Thursday, Council of Governors Chairman Wycliffe Oparanya said county governments are cash-strapped and will have no option but to shut down if the ongoing revenue row is not resolved within the next two weeks.

“The County Governments will not be able to pay salaries at end of this month going forward. Beyond, the 16th of September 2019, if the matter is not resolved the County Governments will have no option but to shut down,” read the statement.

The Senate and the National Assembly are locked in a push-and pull over the amount of money that should be disbursed to the counties.

Governors, Counties, Revenue
In a statement issued on Thursday, Council of Governors Chairman Wycliffe Oparanya said county governments are cash-strapped and will have no option but to shut down if the ongoing revenue row is not resolved within the next two weeks. Pixabay

While the National Assembly has stuck to a Ksh.316.5 billion allocation to counties, the Senate insists the devolved units should be handed Ksh.335.6 billion.

The matter is already before a mediation committee composed of representatives of both houses of Parliament.

Meanwhile, in various counties workers are yet to receive their July and August salaries even as delivery of essential services remain grounded.

Also Read- Gavi Appealing for $7.4 Billion to Immunize 300 Million Children in 2021-25

President Uhuru Kenyatta has since declared that the government does not have unlimited resources and will therefore not allocate any additional revenue to counties.