Intel Corporation (NASDAQ: INTC) has reported its earnings. This is far from pretty, but not nearly as bad as many were braced for a few weeks ago. The chip and processor giant posted $0.11 non-GAAP EPS ( a drop of over 50%) and $7.14 billion in revenues (a drop of 26%). First Call had estimates at $0.02 EPS and $6.98 billion in revenues. The company also posted gross margins 45.6% rather than estimates of 43% in the mid-range for gross margins.
An interesting data point was that the company had in recent weeks issued an internal memo that warned lightly about the possibility of its first loss in years. But there were also some whisper numbers yesterday that Intel’s earnings were going to not be as bad as the street was expecting. We heard a number of $0.05 EPS or better.
The company sees flattish revenue for the coming quarter, but the company is only giving margin guidance of being in the mid-40’s percentages. The company is also cutting cap-ex.
CEO Paul Otellini said something here which will offer some support for processors, DRAM, software and PC’s: “We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns…”
Shares closed unofficially up 0.2% at $16.01 in regular trading today, and the initial reaction has shares down over 3% at $15.42 after the close. Its 52-week trading range is $12.05 to $25.29.
JON C. OGG
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