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Intel reported a decline in sales and a net loss in the fourth quarter as the US chipmaker attempts a turnaround after turmoil that led to the ouster of chief executive Pat Gelsinger last year.
The Silicon Valley group said its revenues fell 7 per cent year on year in the fourth quarter to $14.3bn. It also posted a net loss of about $126mn, compared with a $2.7bn profit in the same period the previous year. Analysts had forecast a fourth-quarter loss of $838mn on sales of $13.8bn.
“The cost-reduction plan we announced last year to improve the trajectory of the company is having an impact,” said David Zinsner, interim co-CEO and chief financial officer. “We are fostering a culture of efficiency across the business while driving towards greater returns on our invested capital and improved profitability.”
Intel is still searching for a replacement chief executive to try to revive its fortunes. Gelsinger was forced out in December after four years as CEO amid mounting pressure from investors who lost faith in his vision for turning around the business by reinventing it as a client-facing chip manufacturing business. The company reported a $16.6bn loss in the third quarter of 2024, the largest quarterly loss in its history.
Intel’s forecasts for sales and profits in the first quarter of 2025 fell short of Wall Street projections. The group said current quarter revenues will be between $11.7bn and $12.7bn, missing average analysts’ estimates of $12.9bn.
Intel’s shares rose about 2 per cent in after-hours trading in New York.
