Intel stocks fell 'miserably' due to the reform campaign -

Still not stunned after the "major surgery" led to tens of thousands of employees to leave, Intel today announced a profit of 1.5 billion USD in the fourth quarter, down by 39% compared to the same period last year.

Snooker results

The chip giant's revenue in the past quarter was only $ 9.7 billion, equivalent to $ 0.25 per share. Although this result is slightly higher than Wall Street's forecast (US $ 0.25 / share and US $ 9.44 billion), it still falls 5% compared to 12 months ago.

Moreover, Intel itself acknowledged that the difference of 0.01 USD / share was just inflation, due to the fact that the company sold parts of telecommunications chips to Marvell Technology and fired 10,500 employees. .

Over the past year, Intel has slipped a significant share of its market share to rival AMD. However, many observers believe the chip giant is speeding up again when it comes to releasing new chips, including the Core 2 Duo and quad-core Xeon chips.

Source: AP In the past quarter, the microprocessor division's revenue has reached a record high, at the forefront, nothing else is flash memory. However, that success cannot compensate for the stagnant sales of the chipset and motherboard parts.

Overall, Intel said its poor business situation in the past few months stemmed from its inability to lower fixed costs, as well as failing to predict market demand. On the other hand, AMD is too quick to launch new products and offer attractive prices.

As expected, Intel's profit also declined significantly compared to fiscal year 2005. Its profit this year was only $ 5 billion, down 42% compared to last year.

During the fiscal year 2006, Intel achieved a total revenue of US $ 35.4 billion, 9% less than the fiscal year of 2006. Calculated, each share has a turnover of US $ 0.86, 39% less than the same. Last year, although it was still "better" than previous analysts' expectations (US $ 35.13 billion and US $ 0.84 / share).

Light in the end of tunnel

Model to replicate Formula One racing, running on Intel's Core 2 Extreme chip platform at the CES 2007 exhibition. Source: Reuters . Perhaps the most disappointed is Intel's CEO Paul Otellini. When announcing a plan to reform the company, Otellini had predicted that its earnings this year would only fall from $ 12.1 billion (2005) to $ 9.3 billion. However, in fact, it only reached 5.7 billion USD only.

Anyway, in the meeting with investors this morning, Otellini said hard that Intel had "survived a challenging year". The problem is whether 2007 is less challenging or not, when the rare bright spot in Intel's revenue picture this year (the dual-core Core 2 Duo processor is selling well) can be "wiped out" by coins. How to gradually switch from the desktop to the market notebook?

Of course, Otellini is still promising that Intel will bring better financial results in 2007. His reform plan has cut the chip giant's tenth worldwide. Once you don't have to bear the burden of wages, Intel will get more profits from new products.

Most likely, the three most profitable events for Intel in 2007 were the completion of a transition from 90-nanometer chip manufacturing technology to 65-nanometer, quad-core processors that became popular and Santa Rosa mobile platform launched.

Trong Cam