Yuck. Revenue down 32% and again they lost money.
CCG revenue down 36%, DCG down 33%... that in Q4 compared to previous year.
Q1 Guidance is even worse... revenue down 40% YoY.
But are those still mostly 14nm? If yes then sure, keeps some water from coming through the hull, but I still wouldn't call it amazing.Have to say that server volume only being down 16% is pretty amazing. It really should be worse.
I think Pat's plan is to spin off the design teams. It will be too hard to get funding for the Fabs. IPO the design team and fund the Fabs with the cash.
Jesus take the wheel?
I indeed have to admit, that I find that a bit disturbing about Pat. But I do not want to get too much into that kind of discussion...
All employees below Principal Engineer, grades 7 to 11, will get a 5% cut, 10% cuts will be instituted for VPs, and the executive leadership team will take a 15% cut, with Pat Gelsinger taking a 25% cut. These cuts hurt even more when we are in an inflationary environment. These cost cuts are, of course, dwarfed by their quarterly dividend, of course, which we have been clamoring for them to cut for over a year.
Maybe it was on Thursday!Intel’s stock was down over 6% on Friday. . .
What does this have to do with Intels Q4 results ? Just trying to make it look good as a supporter ?Maybe it was on Thursday!
Anyways, the non K 65W 13th generation is out of stock with the exception of the 13900. Many of the Intel pundits are puzzled why that is so! The company has no comment! I am still waiting patiently for: 13500, 13600, 13700 to buy when it is back in or is released into the retail channels. Do not care if it is marked up past the MSRP! Just want one! Never thought that they be out of stock in a day and no re-stock for two/three weeks now! The first that gets in stock and buying!
The problem with pay cuts is that the people most incentivized to leave are the people you least want to. Hence why most companies do layoffs instead, where they can at least control what talent they keep. So yes, completely agree.this "cost reductions" is outrageous stupid.
this might backfire to the extent that intel will have to reinstate employee benefits and cut dividends drastically for the sake of damage control , i am afraid Intel just incurred a long lasting self inflicted "employee trust" damage.
this "cost reductions" is outrageous stupid.
this might backfire to the extent that intel will have to reinstate employee benefits and cut dividends drastically for the sake of damage control , i am afraid Intel just incurred a long lasting self inflicted "employee trust" damage.
Yep. Basically, Brain Drain Part 2: Semiconductor Boogaloo.The problem with pay cuts is that the people most incentivized to leave are the people you least want to. Hence why most companies do layoffs instead, where they can at least control what talent they keep. So yes, completely agree.
if your betting the pain is short term , layoffs have an immediate cost with medium turn gain. So maybe Pat is hoping for a market turn around by end of 23. All these companies that really need that to happen need to screaming at congress and Biden to give Ukraine every weapon under the sun. A protracted war means energy costs will remain high and uncertainty will slow investment.The problem with pay cuts is that the people most incentivized to leave are the people you least want to. Hence why most companies do layoffs instead, where they can at least control what talent they keep. So yes, completely agree.
...
So at least in desktops (and laptops) Intel is still competitive and combined with their fab services they may survive quite comfortably (ignoring shareholders grinding their teeth not getting what they would wish), while delivering interesting products to customers, who are benefiting from the problematic situation Intel is now in.
...
Oh. I should correct what I wrote. Making EMPLOYEES grind their teeth not getting what they would wish instead of shareholders, the company may not survive at all.Good lord. Intel apparently has salary and benefit cuts across the board as a result of their financial situation. Meanwhile, dividends are being maintained and tax payer dollars are being pumped into Intel to keep their fab business afloat.
this might backfire to the extent that intel will have to reinstate employee benefits and cut dividends drastically for the sake of damage control
No sympathy needed.
(In Millions, Except Par Value; Unaudited)
Property, plant and equipment, net
Retained earnings
They spend 17bil for FABs
put 2 more bil under the mattress
and they still made 8bil net income for the full 2022...
They are doing fine.
They are not taking the money for the expansions from the mountain of gold but from the running business which is why it looks bad if you are only looking at the main numbers.
Good lord. Intel apparently has salary and benefit cuts across the board as a result of their financial situation. Meanwhile, dividends are being maintained and tax payer dollars are being pumped into Intel to keep their fab business afloat.
If Intel engineers jump ship in masses, it's going to bite them in the ass in the future, sort of like a robbing Peter to pay Paul situation.
Intel Cuts Pay For Employees To Keep Their Quarterly Dividend
Hot off the presses, we have confirmation from multiple employees that Intel is cutting costs tremendously at the expense of their employees. These cuts are broad-based, with employees having their compensation affected. Quarterly pay bonuses are gone, annual bonuses are being paused, 401k match...www.semianalysis.com
if your betting the pain is short term , layoffs have an immediate cost with medium turn gain. So maybe Pat is hoping for a market turn around by end of 23. All these companies that really need that to happen need to screaming at congress and Biden to give Ukraine every weapon under the sun. A protracted war means energy costs will remain high and uncertainty will slow investment.
at least he can stand up and say i am taking the "pain" as well.
You have to come up with actual links to those numbers, you can't just claim anything you want.That's not the full or correct picture. Intel had negative cash flow of about 9 billion for the whole year of 2022. Negative 4 billion in Q4 alone.
GAAP | Non-GAAP | ||||||
2022 | 2021 | vs. 2021 | 2022 | 2021 | vs. 2021 | ||
| Revenue ($B) | $63.1 | $79.0 | down 20% | $63.1^ | $74.7 | down 16% | |
| Gross margin | 42.6% | 55.4% | down 12.8 ppts | 47.3% | 58.1% | down 10.8 ppts | |
| R&D and MG&A ($B) | $24.5 | $21.7 | up 13% | $21.9 | $19.2 | up 14% | |
| Operating margin | 3.7% | 24.6% | down 20.9 ppts | 12.6% | 32.4% | down 19.9 ppts | |
| Tax rate | (3.2)% | 8.5% | down 11.7 ppts | 4.1% | 8.7% | down 4.6 ppts | |
| Net income ($B) | $8.0 | $19.9 | down 60% | $7.6 | $21.7 | down 65% | |
| Earnings per share | $1.94 | $4.86 | down 60% | $1.84 | $5.30 | down 65% |
You have to come up with actual links to those numbers, you can't just claim anything you want.
Intel stated 8bil net income for the full year, the company generated $15.4 billion in cash from operations and paid dividends of $6.0 billion.
Full-Year 2022 Financial Results
Revenue ($B) Gross margin R&D and MG&A ($B) Operating margin Tax rate Net income ($B) Earnings per share
But are those still mostly 14nm? If yes then sure, keeps some water from coming through the hull, but I still wouldn't call it amazing.
Absolutely this. Bonuses are (ideally) based on meeting specific advantageous targets where employees can make a difference. So a great way to tweak that would have been cutting base salary pay even more but keeping if not increasing the bonuses and merit-based raises that Intel requires to meet and exceed on in the current economic and competitive environment. Instead they really abandoned all quarterly bonuses, annual bonuses, and merit-based raises? Completely crazy.I think the bonuses being cut is a bigger deal than people realize too. At least traditionally, Intel bonuses could be very generous and a significant part of an employee's income.
I wrote about this.Absolutely this. Bonuses are (ideally) based on meeting specific advantageous targets where employees can make a difference. So a great way to tweak that would have been cutting base salary pay even more but keeping if not increasing the bonuses and merit-based raises that Intel requires to meet and exceed on in the current economic and competitive environment. Instead they really abandoned all quarterly bonuses, annual bonuses, and merit-based raises? Completely crazy.
No server profits = No new fabs. It really is that simple.
Cutting pay is a bad, bad idea. The only reason you would do this is if you can't afford to lay enough people off (lawl). The dividend is going too but probally one more quarter so execs can sell their stock.