Intel Returns To Profitability After Two Quarters of Losses

Intel reported second-quarter earnings on Thursday, including a return to profitability after two straight quarters of losses, and a stronger-than-expected forecast. CNBC reports: For the third quarter, Intel expects earnings of $0.20 per share, adjusted, on revenue of $13.4 billion at the midpoint, versus analyst expectations of 16 cents per share on $13.23 billion in sales. Intel posted net income of $1.5 billion, or earnings of $0.35 per share, versus a net loss of $454 million, or a loss of 11 cents per share, in the same quarter last year. Intel CFO David Zinsner said in a statement that part of the reason that Intel's report was stronger than expected was because of the progress it has made towards slashing $3 billion in costs this year. Earlier this year, Intel slashed its dividend and announced plans to save $10 billion per year by 2025, including through layoffs. Revenue fell to $12.9 billion from $15.3 billion a year ago, marking the sixth consecutive quarter of declining sales for the company. Here's how Intel's business units performed:- Intel's Client Computing group, which includes the company's laptop and desktop processor shipments, fell 12% annually to $6.8 billion.The overall PC market has been slumping for over a year.- Intel's server chip division, which is reported as Data Center and AI, declined 15% to $4.0 billion in sales.- Intel's Network and Edge division, which sells networking products for telecommunications, declined 28% to $1.4 billion.- Mobileye, a publicly-traded Intel subsidiary focusing on self-driving cars, saw sales down 1% on an annual basis to $454 million.- It reported $232 million in revenue for its foundry business, Intel Foundry Services, that makes chips for other companies.

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