Intel (NASDAQ:INTC) reported Wednesday a 29% decline in second-quarter net income and lowered its outlook for the year, as the chip maker continues to face headwinds in the PC market.
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The company’s PC segment, which accounts for most of the top line, saw its revenue drop 7.5% compared to the year-ago period.
Chief Executive Brian Krzanich, who took the helm in May, has said he will focus on getting Intel’s chips into more smartphones and tablets to capitalize on sales of mobile devices.
“Looking ahead, the market will continue buying a wide range of computing products,” Krzanich said in a statement. “To embrace these opportunities, I’ve made it Intel’s highest priority to create the best products for the fast growing ultra-mobile market segment.”
In the latest period, Intel’s profit was $2 billion versus $2.83 billion a year earlier. On a per-share basis, earnings fell to 39 cents from 54 cents.
Overall sales fell 5.1% to $12.8 billion. Gross margin narrowed to 58.3% from 63.4%.
Analysts were looking for pre-share earnings of 39 cents on revenue of $12.89 billion.
Intel expects revenue this year to remain flat, down from its previous call for percentage growth in the low single-digits
For the current quarter, the company projects revenue to fall within a range of $13 billion to $14 billion. Wall Street’s consensus is $13.73 billion.
Shares closed Wednesday at $24.15 and fell about 35 cents, or 1.45%, in after-hours trading.