Shares of Intel Corp. slid in Wednesday’s extended session after the semiconductor giant’s quarterly earnings beat while revenue missed expectations slightly.
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Shares of the world’s largest chipmaker fell almost 3 percent in after-hours trading.
Analysts polled by Thomson Reuters expected per-share profit of 53 cents and revenue of $13.54 billion.
Revenue from the company’s data center business rose 5 percent to $4 billion from a year earlier and accounted for 30 percent of total revenue.
Intel expects its restructuring to accelerate its transformation from a PC company to one that “powers the cloud and billions of smart, connected computing devices”.
“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”, CEO Brian Krzanich said in a statement. On Wednesday, Intel said it booked $1.41 billion worth of restructuring and other charges during the quarter. Security technology products also put in a good performance, with revenue of $537 million, a 10 percent gain over last-year’s second quarter. Analysts were expecting EPS of $0.53 on revenues of $13.54 billion.
Krzanich that Intel’s restructuring initiative “is solidly on-track”.
Intel has 106,000 employees, down 6,000 from the previous quarter.
Gross margin fell to 58.9% from 62.5%.
For the third quarter, it sees revenues of $14.4 billion to $15.4 billion, compared to the $14.69 billion consensus. Non-Volatile Memory Solutions Group revenue was $554 million, down 1 percent sequentially and down 20 percent year-over-year.
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The Internet of Things Group remains quite small for now, with revenue of $572 million, and notably down 12% on last quarter and 2% year-over-year.
