Intel Announces Second Quarter 2022 Earning Report
Intel announced its second-quarter 2022 financial results today, and both revenue and profit were lower than expected, generally more than 14% lower. Intel CEO Pat Gelsinger said that the second quarter of 2022 was lower than the set target, and the next step must be better. Some analysts said that this was Intel’s most disappointing performance since 1999, and its operations fell into a trough.
Intel’s total revenue in the second quarter of 2022 was $15.321 billion, a 22% drop from $19.631 billion in the same period last year, far from Intel’s original estimate of $18 billion. The gross profit margin fell to 36.5% from 50.4% in the previous quarter, which was also far lower than Intel’s original estimate of 48%. Diluted loss per share was $0.11, down sharply from $1.24 a year earlier.
If broken down by sector, in the second quarter of 2022, client computing group (CCG) revenue was $7.665 billion, down 25% year-on-year. Data Center and Artificial Intelligence (DCAI) revenue was $4.649 billion, down 16% year-on-year. Network and edge business (NEX) revenue were $2.333 billion, an increase of 11% year-on-year. Accelerated Computing and Graphics (AXG) revenue was $186 million, up 5% year over year. Mobileye’s revenue was $460 million, up 41% year over year. Intel Foundry Services (IFS) revenue was $122 million, down 54% year over year.
Intel said the sharp drop in revenue was due to the economic downturn and declining demand for personal computers, in addition to dealing with supply and transportation issues caused by the outbreak. Intel expects revenue in the third quarter of 2022 to be between $15 billion and $16 billion, with a gross margin of about 43.2%. At the same time, it also lowered its revenue forecast for the full year of 2022, and the expected revenue is also lowered from the original 76 billion to between $65 billion and $68 billion.
