After a slump in sales and red numbers in the past quarter, Intel conceded its annual targets.
The chip giant expects less sales and profits than three months ago. Investors temporarily dropped the stock by more than 10 percent in after-hours trading on Thursday.
Intel’s revenue fell 22 percent year over year to $15.3 billion in the second fiscal quarter ended in early July. The bottom line was a loss of $454 million after a profit of just over $5 billion a year earlier. A trigger was the decline in revenues in the PC business by a quarter to 7.7 billion dollars, as announced by Intel.
For the full year, Intel has now lowered its revenue forecast to $65 billion to $68 billion from the previous $76 billion. Adjusted earnings per share are now also expected to be significantly lower. The figures fell well short of analysts’ expectations.
