Intel reports slightly growing revenue with reduced profit due to restructuring

At a meeting on Q2 2016 figures, Intel reported that its profits have fallen sharply compared to the same quarter in 2015. The company attributes this to the costs associated with the recent reorganization. Turnover increased by three percent.

Intel estimates the costs of the reorganization at a total of 1.41 billion dollars, which is approximately 1.27 billion euros. As a result, the company’s profit falls to $1.3 billion. In the same quarter in 2015, profit was still $2.7 billion, a decline of 51 percent. In April, the company announced a restructuring, in which it wants to cut 12,000 jobs. Six thousand of these have now disappeared.

Intel CEO Brian Krzanich says the second quarter result is in line with his own expectations. He added that the company remains cautious in the PC market, but is expected to see growth this year in data centers, Internet-of-things and FPGAs. As a result, the company’s processor division, the Client Computing Group, saw a three percent drop in revenue to $7.3 billion. Intel’s total revenue amounted to $13.5 billion compared to $13.2 billion the year before.

The data center division made progress with a five percent increase in revenue versus two percent growth in the Internet of Things. Memory also turned out to yield twenty percent less profit. The Programmable Solutions division sees an increase of thirty percent, except in the previous quarter’s revenue of $99 million that was generated by acquisitions. For the current quarter, Intel expects revenue of $14.9 billion with a margin of $500 million.