Intel: Korea Electric Power Corp. (KEPCO) of the United States.

Intel: Korea Electric Power Corp. (KEPCO) of the United States.
Intel to Stop Dividends, Only Paying Oren Hours for Government Subsidies


🔹 Revenue: $12.8 billion (expected $129.5 billion) 🔴; down -1% year-on-year
🔹 Non-GAAP EPS: $0.02 (expected $0.10) 🔴
🔹 Gross profit: 35.4% (expected 43.6%) 🔴
🔸 It aims to reduce spending by more than $10 billion by 2025.
🔸 Includes over 15% headcount reduction by the end of 2024.
🔸 Dividends will be suspended from Q4 2024 to improve liquidity.

Q3 2024 Guidance:
🔹 Earnings: $12.5 billion to $13.5 billion (expected $143.8 B) 🔴
🔹 Non-GAAP EPS: $(0.03) (expected $0.30) 🔴

Segment performance:
🔹 Client Computing Group (CCG) earnings: $7.4 billion (expected $753B) 🟡; up +9% year-over-year
🔹 Data center and AI (DCAI) earnings: $3 billion (estimated $30.7B) 🔴; down -3% year-on-year
🔹 Network and Edge (NEX) earnings: $1.3 billion (expected $1.4 billion) 🔴; down -1% year-on-year
🔹 Intel Foundry Revenue: $4.3 billion ($447B expected) 🔴; up +4% year-on-year
🔹 Altera Revenue: $361M (expected $356.1M) 🟢; down -57% year-on-year
🔹 Mobileye sales: $440M (expected $429.7M) 🟢; down -3% year-on-year
🔹 Other earnings: $167M (expected $177.5M) 🔴; up +43% year-on-year

Pat Gelsinger's Comment CEO:
🔸 "Despite achieving key product and process technology milestones, our second quarter financial performance was disappointing. Trends in the second half of the year are more difficult than previously expected, and we are taking decisive steps to leverage our new operating model to improve operations. As we accelerate the IDM 2.0 transformation, these actions, combined with next year's Intel 18A launch to regain process technology leadership, will strengthen our position in the market, improve profitability, and create shareholder value."

CFO David Zinsner commented:
🔸 "Q2 earnings were impacted by gross margin headwinds from accelerated ramps in AI PC products, higher costs than typical costs associated with non-core businesses, and the impact of unused capacity. By implementing spending cuts, we expect to make the right investments to create long-term value for our shareholders while meaningfully improving liquidity and reducing debt balances by taking aggressive steps to improve profits and strengthen our balance sheet."

Key milestones:
🔸 Major advances have been made in the Intel 18A process.
🔸 Intel 18A has launched Panther Lake and Clearwater Forest products.
As part of the 🔸 Semiconductor Joint Investment Program (SCIP), it announced the establishment of a joint venture with Apollo related to Intel Fab 34 in Ireland.

Dividend announcement:
🔹 Q3 dividend announced at $0.125 per share, due on September 1, 2024.
🔸 Dividends will be suspended from Q4 2024 for liquidity priority.

Business Outlook:
🔸 Focus on reducing costs, maintaining core investments, and strategic realignment to improve market competitiveness and shareholder value.