The multinational chip manufacturer Intel Corporation (NASDAQ: INTC) has recently reported its earnings results for the second quarter and the figures are mixed. The tech giant posted $13.5 billion in revenues and non-GAAP earnings per share of 59 cents. Market analysts forecasted that the tech giant’s earnings per share will come in at $0.53 on $13.54 billion revenue.
In addition, the chipmaker announced that its net income clocked in at $1.3 billion and GAAP earnings per share of 27 cents.
According to the CEO of Intel Mr. Brian Krzanich, “Second-quarter revenue matched our outlook and profitability was better than we expected.”
“In addition, our restructuring initiative to accelerate Intel’s transformation is solidly on-track. We’re gaining momentum heading into the second half. While we remain cautious on the PC market, we’re forecasting growth in 2016 built on strength in data center, the Internet of Things and programmable solutions,” the Intel CEO further added.
During the month of April, the chip manufacturer said that it would need to take a charge of $1.2 billion for the significant restructuring of its business.
Intel Corporation is currently in the middle of a shift as it gears up for the Internet of Things, which a lot of people believe could be the next wave in the computing industry. As different corporations, such as Softbank, place their bids to have a presence on the Internet of Things, the multinational chip company appears to be establishing its foundation for its own transition.
The tech giant announced before its last earnings report that it would be reducing its staff by about 10 percent, which is equivalent to 12,000 jobs. This development resulted in a restructuring charge of $1.2 billion, in order for Intel to make a better transition to developing various kinds of chips beyond those designed for personal computing.
Aside from that, the chip manufacturer is also reportedly considering to offload its whole security unit, which is based around its purchase of the antivirus software McAfee back in 2010 for approximately $7.7 billion. Moreover, the multinational tech corporation is also restructuring Intel Capital, which has invested close to $12 billion since the year 1991. Intel Capital is one of the largest corporate VC arms in the technology industry.
According to Intel, the Client Computing division registered $7.3 billion in revenues, lower by 3 percent in the previous quarter and on a year-on-year basis. Meanwhile, the Data Center Group segment’s sales reached $4 billion, gaining about 1 percent sequentially and 5 percent on a year-over-year basis.
For now, the Internet of Things Group stays quite small with $572 million in revenue, and significantly lower by 12 percent compared to last quarter and 2 percent on a year-over-year basis.
As for the Non-Volatile Memory Solutions Group, revenue clocked in at $554 million, falling by 1 percent sequentially and lower by 20 percent on a year-over-year basis. The Programmable Solutions segment’s revenue rallied by 30 percent sequentially, hitting $465 million.
As of 6:43 AM GMT -4 on July 21, the INTC stock is trading at $35.69, up by 1.54 percent or 0.54 points.