Intel completed a year with losses of $ 18.8 billion, but the loss of contract direction decreased

Intel Corporation was clearly needed by the results of the quarterly report in early December of the General Director, and its shares after closing the trading increased by 3.6 %, since the quarterly revenue turned out to be higher than the expectations, and the weak forecast for the current quarter could not upset the investors .

Image source: Intel

One way or another, it should be recognized that the quarterly revenue of Intel according to the results of the last reporting period in an annual comparison was reduced by 7 % to $ 14.26 billion, but was higher than the expectations that were recorded at the level of $ 13.81 billion. The Intel net losses according to the results of the quarter reached $ 126 million, while a year earlier the company received a net profit of $ 2.67 billion. The financial director of Intel David Zinsner, who combines its position with the duties of the general director, explained at the quarterly event that the search for the new head of the corporation is ongoing, But it’s too early to share the results achieved in this area.

As it turned out, Intel decided to refuse to release Falcon Shores chips for computing accelerators, they will only be used for testing needs. Last year, the company’s management stated that he would refuse to release Rialto Bridge in favor of Falcon Shores, but now it is clear that these chips would not get a mass consumer. However, Intel does not refuse plans for the development of the market for AIS-accelerators at all, and plans to offer customers the Jaguar Shores chips. At the same time, the emphasis will be made on ready -made solutions, and not the chips on their own. In general, the assortment of Intel’s offers should become easier, it will not try to cover the immense, but in the existing market segments she is ready to fiercely fight for strengthening their positions, as the leadership of the corporation explains.

According to Intel management, in the current quarter, the company will be crazy, having received revenue from $ 11.7 to $ 12.7 billion. Analysts on average counted on $ 12.87 billion, so the company itself was disappointed for them. In addition to seasonal factors, a difficult economic situation, competitors and probable introduction by the new authorities of the United States of increased customs duties will affect the revenue of Intel in the current quarter.

In the client segment, Intel helped out $ 8.02 billion according to the results of the last quarter, which is 9 % less than last year’s result, but above those $ 7.84 billion, which were counted by analysts. As Zinsner explained, partially the revenue of the fourth quarter was determined by the desire of the company’s clients to buy components for the future in anticipation of increasing customs duties, but it is difficult to give this factor a quantitative assessment. According to the results of the last quarter, the operating profit in this segment amounted to $ 3.1 billion, and the norm of operating profit reached the maximum values ​​of 38.1 %maximum in the previous quarters.

In the server segment, which also includes solutions for artificial intelligence systems, Intel in the last quarter managed to limit himself to a decrease in revenue by 3 % to $ 3.39 billion and ended up in analysts. Operating profit dropped to $ 200 million, and its norm instead of 21.1 % years ago was 6.9 %. In the segment of network solutions, the revenue increased by 10 % to $ 1.62 billion and exceeded the market expectations. As Sinsner’s reported at a reporting event was slightly blurred, by the next quarterly report, the Intel management will be able to tell the audience more details about the plans for the business of the subsidiary of Altera. It is generally accepted that now Intel is looking for buyers for some of the assets of this developer of programmable matrices, who in 2015 bought for $ 14.5 billion.

The company will begin the mass production of chips using Intel 18A technology in the second half of the year, then the Panther Lake family processors will also be presented. The contract business for the whole year generally brought Intel losses of $ 13.4 billion, which is noticeably more than $ 7 billion 2023, the revenue of Intel Foundry decreased by 13 % to $ 4.5 billion, at the end of the year, it fell by 7 % Up to $ 17.5 billion. Intel Foundry operating losses in the fourth quarter limited $ 2.3 billion, which is more than two times less than the results of the third quarter, which became the most unprofitable for this business in 2024. At the operational level, Intel Foundry should be crazy by the end of 2027, as noted in the presentation of the company. The current leadership of Intel considers it necessary to turn a contract unit into a competitive and profitable business. It does not seem to be achieved by the structural department of Intel Foundry.

Nova Lake processors, which will become successors manufactured using Intel 18A technology Panther Lake chips, will continue to use crystals produced by third -party performers, although they will not do without their own.

According to the results of last year, in general, Intel reduced the revenue by 2 % to $ 53.1 billion and received net losses of $ 18.8 billion. The staff reduction was carried out in accordance with the plans announced earlier, since the number of Intel personnel was 15,000 by the end of the last quarter A person is less than at the end of the third.