Intel PC chip sales rise, but profit forecast falls short: Details here
By Stephen Nellis and Chavi Mehta
(Reuters) - Intel Corp on
Thursday raised its annual sales outlook on booming demand for personal
computers, but its second-quarter profit forecast fell short of analyst
expectations as the company spends heavily to get its manufacturing operations
back on track and catch up to rivals with faster chips.
Intel shares
were down 3.1% to $60.60 in after-hours trading after the results. The company
also missed first-quarter expectations in its closely watched data center chip
unit.
Intel fumbled
new manufacturing technology in recent years, causing it to fall behind rivals
such as Advanced Micro Devices Inc and Nvidia Corp in the
race to make faster, smaller chips. Patrick Gelsinger, who returned to Intel as
its chief executive earlier this year, said the chipmaker has begun to resolve
its manufacturing problems, and in March announced a major expansion plan to
build new factories in the United States and Europe.
Intel, which is one of the few remaining companies in the
processor chip industry that both designs and manufactures its own chips, has
said it has been able to beat out rivals during a global chip shortage by
operating its own factories. But the company said shortfalls of other
third-party components needed to build complete computers could hold back its
sales this year.
Intel said its PC chip business had sales of $10.6 billion in the
first quarter, ahead of analyst expectations of $10.17 billion, according to
data from FactSet.
Gelsinger told Reuters following the release of Intel's earnings
that the company exceeded PC chip expectations in part because it was able to
finish in its own factories so-called organic substrates, which are materials
used to package delicate silicon chips into tougher housings so they can
tolerate being put onto circuit boards.
Gelsinger said the changes helped Intel mitigate a global shortage
of the substrate materials and "generate millions of units of more
supply."
Comments
Post a Comment