Intel releases first-quarter earnings results

Intel expects the second -quarter revenues under Wall Street’s estimates on Thursday, where she threw a shadow on the first round of lip profits, CEO of the new lip company at the top of the Chinese raging trade war.

Intel shares decreased by 5.8 % in extended trading.

Intel’s future outlook can be another source of pessimism for investors who rely on Tan to convert the chip maker after years of mistakes that she left is struggling to obtain foothold in the prosperous artificial intelligence market.

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Santa Clara, California, expects $ 11.2 billion to 12.4 billion dollars for June, compared to the average estimate of analysts of $ 12.82 billion, according to the data that LSEG raised.

David Zensner said that concerns about the definitions prompted customers to store Intel chips, which strengthened sales in the first quarter. The company was unable to specify the interest amount, and it is expected that the second quarter will suffer as a result.

“Our guidelines for this quarter, in the second quarter, are a reflection of this uncertainty caused by the customs tariff.”

Amid Tan’s attempts to simplify the company and reduce costs, Intel also said it reduces the goal of modified operating expenses to about $ 17 billion in 2025, a decrease from its previously announced goal of $ 17.5 billion, and now targeting $ 16 billion in 2026.

“There is a lot of bureaucracy that has been built over time,” Ziner told Reuters. “He wants to cut all of this to make engineers more successful and allow them to get off the products more quickly. We have to go through all of this.”

The head of finance said that he was not yet sure of the impact of restructuring plans on the total number of employees, but this clarity will appear when the company reports the results of the second quarter.

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In a memorandum of employees before the first phone call to analysts as CEO, Tan wrote that the demobilization of workers will start in the second quarter and that these changes will focus on reducing the internal bureaucracy of the company. Tan also plans to reduce the number and size of internal meetings.

“There is no way about the fact that these critical changes will reduce the size of our workforce,” Tan wrote. “As I said when I joined, we need to make some very difficult decisions to put our company in full swing for the future.”

Starting on September 1, Intel will ask the employees to return to the office for four days a week, Tan’s notes said.

The company also reduced the goal of the total capital expenditures to 18 billion dollars for 2025, a decrease from the previous goal of the company, which is 20 billion dollars.

“Intel is taking measures to pay better and more efficient implementation throughout the work. The plan includes simplifying the institution and eliminating the layers of management,” the company said in a statement.

While president Donald Trump now possesses chips from the tariffs of definitions, the high reprisers in Beijing are on semiconductors made by the United States, stopping Intel sales to China, and is usually its largest market.

The US -made chips in the United States are to face 45 % or higher, based on the notification of the state -backed Chinese -backed association earlier in April.

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China imports 10 billion dollars from the United States annually. About $ 8 billion of these central processing units (CPU) collected by Intel in the United States, according to Bernstein’s analysts.

Intel revenues in the first quarter were flat at $ 12.67 billion. The results overcame the estimates of $ 12.30 billion.

The company expects to break the profit in the second quarter of each share, compared to estimates of 6 cents profit per share.

“Cautious expectations (the second quarter) include the induction uncertainty associated with the competitive environment in both the personal computer customer and data center markets.”

Former CEO of Intel Pat Gilger. (I-Hwa Cheng / Bloomberg via Getty Images / Getty Images)

Bat Giller has manufactured Intel to become a firm manufacturer for chips, a strategy defended by Tan’s predecessor, Pat Gilgringer, in order to finance the company because it flows on billions of dollars in creating advanced manufacturing facilities.