Summary
Intel Corporation reported $12.8 billion in revenue for the second quarter of 2024, a slight decrease of $116 million compared to the same period in 2023. The company experienced a net loss attributable to Intel of $1.61 billion, or a diluted loss per share of $0.38, a significant decline from the net income of $1.48 billion reported in the prior year's second quarter. This downturn was influenced by substantial restructuring and litigation charges, including a significant $780 million charge related to R2 litigation. Despite the overall net loss, the Client Computing Group (CCG) showed revenue growth driven by increased notebook and desktop volumes. Key strategic developments during the quarter include the release of Intel 18A PDK 1.0 to foundry customers and the completion of a $11.0 billion transaction with Apollo Global Management for a 49% stake in a key Irish manufacturing facility (Fab 34), aligning with their Smart Capital strategy. However, the company also announced the suspension of its common stock dividends starting in the fourth quarter of 2024 to prioritize liquidity for strategic investments. Management is implementing cost-reduction measures, including headcount reductions, to drive profitable growth and operational efficiency. The company's cash position remains robust, with total cash and short-term investments at $29.3 billion.
Financial Highlights
52 data points| Revenue | $12.83B |
| Cost of Revenue | $8.29B |
| Gross Profit | $4.55B |
| R&D Expenses | $4.24B |
| SG&A Expenses | $1.33B |
| Operating Expenses | $6.51B |
| Operating Income | -$1.96B |
| Net Income | -$1.61B |
| EPS (Basic) | $-0.38 |
| EPS (Diluted) | $-0.38 |
| Shares Outstanding (Basic) | 4.27B |
| Shares Outstanding (Diluted) | 4.27B |
Key Highlights
- 1Total revenue for Q2 2024 was $12.8 billion, down slightly by 1% from Q2 2023.
- 2Net loss attributable to Intel was $1.61 billion in Q2 2024, a significant decrease from a net income of $1.48 billion in Q2 2023.
- 3Diluted loss per share was $0.38 in Q2 2024, compared to diluted earnings per share of $0.35 in Q2 2023.
- 4The company announced the suspension of common stock dividends starting Q4 2024 to prioritize liquidity for strategic investments.
- 5A significant $780 million charge was recorded related to R2 litigation, contributing to higher restructuring and other charges of $943 million in Q2 2024.
- 6Intel completed an $11.0 billion transaction with Apollo Global Management for a 49% stake in its Fab 34 facility in Ireland as part of its Smart Capital strategy.
- 7Client Computing Group (CCG) revenue increased by 9% year-over-year, driven by higher notebook and desktop volumes.