Is this the sign of recovery for PC market?
Intel has reported second quarter loss of $398m, hit with a fine from the European Union. The chip maker reversed the market expectations and showed signs of recovery for the PC business.
Paul Otellini, president and CEO of Intel, said: “Intel’s second-quarter results reflect improving conditions in the PC market segment with our strongest first- to second-quarter growth since 1988 and a clear expectation for a seasonally stronger second half.”
For the second quarter of 2009, the company posted net loss of $398m or loss of 7 cents per share, compared with a year-ago profit of $1.6 billion, or 28 cents per share. This was the first quarterly loss for the company since 1986, as it was hit with an antitrust fine of $1.45 billion from the European Union. Intel intends to appeal the case.
The Santa Clara, California-based company posted revenue of $8 billion, down 15% year over year. Revenue from Intel Atom microprocessors and chipsets was $362m, up 65% sequentially and inventories were down by $240m in the second quarter.
Otellini added: “Intel’s strategy of investing in new technologies and innovative products, combined with ongoing focus on operating efficiencies, continues to yield benefits that are evident in our strengthening financial performance.”
Looking ahead, Intel expects third quarter revenue in between $8.1 billion and $8.9 billion. The company forecast third quarter gross margin at 53%, plus or minus 2 percentage points.