Technology

Intel predicts a 22% fall in revenue in the second quarter

Published on 28.07.2022 at 18:01

Intel was forced to revise its forecast for 2022 downwards (Photo: 123RF)

SAN FRANCISCO — Intel reported second-quarter revenue of $15.3 billion, down 22% from last year and nearly $3 billion below expectations.

The American semiconductor giant has been forced to revise its 2022 forecast downward, to $65-68 billion in annual sales from $74 billion originally expected.

“The results for this quarter are below the standards we have set for the company and our shareholders. We have to work better, and we will work better,” said Intel CEO Pat Gelsinger.

The California group also recorded a net loss of $500 million (M$) in the second quarter when it made $5.1 billion in the same period in 2021.

The group also revised its full-year earnings-per-share forecast downward to $2.3 from an originally expected $3.6.

The announcement sent the stock down 9.6% after the close of trading.

The company is being watched closely as demand for microchips skyrocketed during the coronavirus pandemic and shortages continue, exacerbated by factory closures in China linked to repeated outbreaks of COVID-19.

On Thursday, the US Congress passed legislation that frees up $52 billion in subsidies to restart semiconductor manufacturing in the United States and tens of billions more for research and development.

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