“Intel Revenue in First Quarter of 2023 Drops Sharply Due to Semiconductor Demand – TechWeb”

[TechWeb]April 28 news, according to foreign media reports, on Thursday local time, Intel announced that the company’s revenue in the first quarter of 2023 will drop sharply due to a sharp drop in demand for semiconductors or chips needed for PCs and smartphones.

The company’s financial report for the first quarter of 2023 shows that the company’s revenue in the first quarter was US$11.7 billion, a year-on-year decrease of 36%. This is the fifth consecutive quarter of decline in the company’s revenue.

In terms of business, in the first quarter, the revenue of the PC-centric Customer Computing Group (CCG) was US$5.8 billion, a year-on-year decrease of 38%; the revenue of the Data Center and Artificial Intelligence Business Group (DCAI) was US$3.7 billion, A year-on-year decrease of 39%; network and edge computing business group (NEX) revenue was US$1.5 billion, a year-on-year decrease of 30%; Intel Foundry Services (IFS) division revenue was US$118 million, a year-on-year decrease of 24%; only the autonomous driving sector Mobileye’s revenue rose 16% year-over-year to $458 million.

Intel’s Client Computing Group, which is responsible for Intel’s CPUs, GPUs and other PC components, blamed the unit’s revenue decline on lower PC demand and OEMs’ focus on clearing existing Intel component inventories.

If calculated in accordance with US GAAP, the company’s net loss in the first quarter was US$2.8 billion. Compared with the net profit of US$100 million, it turned from profit to loss year-on-year; loss per share was US$0.66, compared with US$1.98 per share in the same period last year.

If not calculated in accordance with US GAAP (non-GAAP), the company had a net loss of US$200 million in the first quarter, compared with a net profit of US$3.6 billion in the same period last year; a loss per share of US$0.04, compared with US$0.87 in the same period last year .

Intel expects revenue between $11.5 billion and $12.5 billion in the second quarter of 2023, roughly in line with analysts’ expectations. If calculated in accordance with US GAAP, the diluted loss per share is 0.62 cents; if not calculated in accordance with US GAAP, the diluted loss per share is 0.04 US dollars.

Intel CEO Pat Gelsinger (Pat Gelsinger) said that in the first quarter, the company’s share of the overall PC market increased. He expects the PC business to improve later this year as the company ramps up production of its next-generation CPU, code-named Meteor Lake, due in the second half of 2023.

He also said the company expects a “moderate recovery” in the second half of the year as the PC market improves and the outlook for data centers brightens. (Little Fox)