Intel Tops Views; Reports Loss on EU Charges

123jump.com Staff
14 Jul, 2009
New York City

Intel sales increased 12% sequentially in the second quarter but reported a loss on a charge of $1.45 billion related to the European Union fine. Earnings without the charges were $1 billion, up from $420 million in the first quarter and down $552 million from the second quarter a year ago.

[R]5:00 PM New York – Intel sales increased 12% sequentially in the second quarter but reported a loss after it took a charge of $1.45 billion related to possible fines from the European Union. Earnings without the charges were $1 billion, up from $420 million in the first quarter and down $552 million from the second quarter a year ago.[/R]

Intel ((INTC)) reported after the close revenues in the second quarter of $8 billion compared to $9.4 billion and net loss of $398 million compared to $1.6 billion.

On GAAP basis, Intel reported a loss of 7cents a share compared to net income of 28 cents a share a year ago.

Earnings in the quarter were $1 billion and earnings per share of 18 cents a share after excluding the reserves for the European Union fine of $1.45 billion.

Excluding the EC fine, the adjusted earnings will be 18 cents a share.

Intel was fined by the European Union for illegal rebate to induce sales in May. The largest microprocessor maker is appealing the decision.

The company reported gross margins of 50.8% but average selling prices of microprocessors were down sequentially.

Intel in the first quarter reported revenues of $7.1 billion and net income of $647 million or 11 cents a share.

For the third quarter Intel guided sales between $8.1 billion and $8.9 billion and gross margin of 53% with 2% margin of variation.

Asian Pacific region increased its share in the quarterly revenues to 55% from 51% and Europe region revenue share declined to 14% from 18%.