As a measure of the impact of the global recession, the world’s largest chip manufacturer Intel has reported its first losses in 22 years – a net loss of close to US$400m on income of US$1bn for the second quarter.
In what is being regarded as a phenomenal performance by the chip giant, Intel would have swung a profit of US$1bn, if not for the US$1.45bn (€1bn) anti-trust fine the EU slammed on the company in May over it allegedly paying computer manufacturers not to use the products of its rival AMD. Intel has vowed to appeal the judgment.
This has resulted in a loss of US$7 per share in the company. The company reported a loss of US$12m on operating income of US$1.4bn.
But, despite the recession, Intel is still improving its revenues, which were up 12pc to US$8bn for the second quarter. This is much higher than analysts had anticipated.
Intel employs over 5,000 people in Ireland – at a major global manufacturing site in Leixlip and an R&D operation in Shannon, where earlier this year it announced the creation of 134 new jobs as part of a €50m investment.
"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," said Paul Otellini (pictured), Intel president and CEO.
"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.
By John Kennedy
Pictured: Intel’s President and CEO, Paul Otellini