Summary
Intel Corporation (INTC) reported $13.3 billion in revenue for the third quarter of 2024, a decrease of 6% year-over-year. The company experienced significant non-cash charges, including $9.9 billion related to valuation allowances against deferred tax assets, $3.1 billion for asset impairments and accelerated depreciation (primarily on the Intel 7 process node), and $2.9 billion for goodwill impairment. These charges resulted in a substantial net loss of $16.6 billion, or $(3.88) per diluted share for the quarter. Despite the overall revenue decline and significant charges, the company made strategic progress. Intel announced its intention to establish Intel Foundry as an independent subsidiary to enhance transparency and attract future funding. The company was also awarded up to $3.0 billion in CHIPS Act funding for secure manufacturing. Key product launches included the Intel® Core™ Ultra 200V series processors and the Intel® Xeon® 6 processor with Gaudi® 3 AI accelerator, signaling a continued focus on next-generation computing and AI capabilities.
Financial Highlights
51 data points| Revenue | $13.28B |
| Cost of Revenue | $11.29B |
| Gross Profit | $2.00B |
| R&D Expenses | $4.05B |
| SG&A Expenses | $1.38B |
| Operating Expenses | $11.05B |
| Operating Income | -$9.06B |
| Net Income | -$16.64B |
| EPS (Basic) | $-3.88 |
| EPS (Diluted) | $-3.88 |
| Shares Outstanding (Basic) | 4.29B |
| Shares Outstanding (Diluted) | 4.29B |
Key Highlights
- 1Total revenue for Q3 2024 was $13.3 billion, down 6% from Q3 2023, driven by decreases in CCG, Altera, and external Intel Foundry revenue, partially offset by growth in DCAI.
- 2The company reported a net loss of $16.6 billion for the quarter due to significant non-cash charges including $9.9 billion for deferred tax asset valuation allowances, $3.1 billion for asset impairments/accelerated depreciation, and $2.9 billion for goodwill impairment.
- 3Intel announced a 2024 Restructuring Plan, including a headcount reduction of 16,500 employees, with associated restructuring charges of $2.8 billion recognized in Q3 2024.
- 4The company intends to establish Intel Foundry as an independent subsidiary to create clearer separation for external customers and enable future funding flexibility.
- 5Intel was awarded up to $3.0 billion in direct funding under the CHIPS and Science Act for a secure enclave program.
- 6New product launches include the Intel® Core™ Ultra 200V series processors and the Intel® Xeon® 6 processor with the Intel® Gaudi® 3 AI accelerator, highlighting advancements in AI and PC technology.
- 7Operating cash flow decreased to $5.1 billion for the first nine months of 2024 from $6.8 billion in the prior year period, while adjusted free cash flow improved significantly.