Intel CFO Dave Zinsner said: “Due to the difficult macroeconomic environment, together with our own execution challenges, our results for the quarter were well below expectations and necessitate a significant revision to our full-year financial guidance. Importantly, expense discipline is not impacting the strategy, and we remain firmly on track to achieve process performance parity in 2024 and unquestioned leadership in 2025. “We are also lowering core expenses in calendar year 2022 and will look to take additional actions in the second half of the year. “In total, we have now exited six business since my return, providing roughly $1.5bn for investments aligned with our IDM2.0 strategy. “These add to actions last year in NAND and the sale of McAfee,” he said. In prepared comments for the Q2 results, Gelsinger also discussed how the company was sharpening its focus in the second quarter by selling its drone business and winding down its efforts in Optane as it shifts to CXL technology. We are embracing this challenging environment to accelerate our transformation.” We are being responsive to changing business conditions, working closely with our customers while remaining laser-focused on our strategy and long-term opportunities. The sudden and rapid decline in economic activity was the largest driver, but the shortfall also reflects our own execution issues. “This quarter’s results were below the standards we have set for the company and our shareholders,” said Pat Gelsinger, Intel CEO. The firm’s Accelerated Computing Systems and Graphics Group (AXG) reported modest growth of 5%. Of the company’s smaller divisions, MobileEye grew its business by 41% with revenue of $460m, while Intel Foundry Services experienced a 54% decline with revenue of $122m.
Of the three major areas of the chipmaker’s business, client computing reported revenue of $7.7bn, 25% less than last year the datacentre and artificial intelligence (AI) group posted revenue of $4.6bn, representing a decline of 16%, and only the networking and edge group saw positive growth with revenue of $2.3bn – 11% up on the same quarter in 2021.