Wednesday January 29, 2020
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

Apple CEO Tim Cook Took Home $125mn in 2019, Less Than in 2018

The company's stock rose by nearly 90 per cent last year

0
apple
Apple CEO Tim Cook speaks during a data privacy conference at the European Parliament in Brussels. VOA

Apple CEO Tim Cook took home $125 million as his pay package in 2019, slightly lower (nearly 8 per cent) than $136 million which he received in total compensation in 2018.

According to an SEC filing, Cook received $3 million as base salary in 2019 but his bonus slid to $7.67 million from $12 million, reports Seeking Alpha.

“Cook’s total pay fell last year as the company failed to top its financial targets by as much as in 2018, but Cook still amassed $125 million in total compensation,” the report said on Friday.

APPLE’s board set less ambitious goals for 2019, lowering its sales target by 3 per cent from 2018 to $256.6 million and its profit target by 15 per cent (YoY) to $60.1 billion.

Cook, 59, earned about $11.56 million in non-equity compensation for 2019 — a 26 per cent decline compared to 2018 when he earned nearly $15.7 million.

“In 2019, Apple’s performance exceeded the target performance goals for both net sales and operating income, resulting in a total payout of 128 per cent of the target payout opportunity for each named executive officer,” Apple said in the SEC filing.

Apple, Tim Cook, Campus, China
Apple CEO Tim Cook discusses the new Apple iPhones and other products at the Steve Jobs Theater during an event to announce new products in Cupertino, California. VOA

Apple shares hit $300 for the first time in late December and closed at $297.43 on Friday.

Apple shares hit a new all-time high of $300 on Thursday, marking significant growth over the course of the last year.

In early January 2019, Apple shares were at $144.

Also Read: Reports Say, Indians Watched Over 2,200 Movies in Theaters in 2019

Apple stock has surged owing to reports of better than expected aCE iPhone 11aCE and 11 Pro sales and reports of stronger AirPods Pro sales.

The company’s stock rose by nearly 90 per cent last year. (IANS)