Restructuring takes its toll on Intel's second-quarter financials
by from Techreport on (#1N02B)
Intel released its second-quarter financial results this evening. Compared to this time a year ago, revenue grew 3% to $13.5 billion, but operating income plunged 54% to $1.3 billion. Intel says that drop in profitability is linked to the restructuring program it announced in the first quarter of this year. The company also notes it's eliminated 6,000 of the projected 12,000 positions it expected to cut as part of its restructuring efforts. Net income fell 51% to $1.3 billion, and gross margin shed 3.6 points to fall to 58.9%.
Intel's Client Computing Group revenue fell 3% year-on-year to $7.3 billion. Platform volumes (a figure that accounts for both processors and chipsets) fell 15%, but average selling prices (or ...