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| Intel posts net loss of $398 mn in Q2 |
| Press Trust of India / New York Jul 15, 2009, 14:21 IST |
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The global computer chip maker Intel swung into losses of $398 million in the second quarter ended June 27 this year due to $1.45 billion fine payment by the company to the European Commission.
The company had a net income of $1.60 billion in the second quarter of June 2008, Intel said in a statement.
During the quarter Intel incurred charges of $1.45 billion as the European Commision's anti-trust fine, which impacted its earnings in the period, according to the statement.
Intel has been fined for using illegal anti-competitive practices to keep away its "only competitor" Advanced Micro Devices (AMD) and also reduce the consumer choice in the global market for 'x86 chips'.
Net revenue declined to $8.02 billion in the latest quarter from $9.4 billion in the corresponding year ago period. However, the revenues of the company saw an increase of 12.30 per cent as compared to $7.14 billion in the first quarter this year.
"Intel's second-quarter results reflect improving conditions in the PC market segment with our strongest first- to second-quarter growth since 1988 and a clear expectation for a seasonally stronger second half," Intel President and CEO Paul Otellini said.
"Intel's strategy of investing in new technologies and innovative products, combined with ongoing focus on operating efficiencies continues to yield benefits that are evident in our strengthening financial performance," Otellini added.
The company's "restructuring and asset management charges were $91 million, better than the company's expectations," the company said in a statement.
During the quarter the company posted a net loss from equity investments and interest payments of $38 million.
Intel's revenue from microprocessors and chipsets was $362 million, up 65 per cent sequentially.
In the Asia Pacific region Intel's revenue decreased to $4.4 billion in the second quarter from $4.8 billion in the year-ago period, while in America it dipped to $1.69 billion in the latest quarter from $1.98 in year-ago period.
In its outlook for the third quarter, Intel expects a revenue of about $8.5 billion. The company's restructuring and asset associated charges would decline to $40 million.
For six months ended June 2009, the company's net income stood at $231 million as compared to $3.04 billion in the half year ended June 28, 2008.
Intel's net revenue was $15.16 billion in the half year ended June 27, 2009 as against $19.14 billion in the year earlier.
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