Intel Q2 2016 earnings reveal stable sales and half the profits
Chipmaker Intel has made public its Q2 2016 financial results and the fallout from its recent restructuring and layoffs have become apparent. Accordingly, Intel's profits have fallen by more than half from 2.7 billion USD in Q2 2015 to just 1.3 billion USD. Revenue, however, has grown by 3 percent from 13.2 billion USD to 13.5 billion USD.
The restructuring costs have been estimated to be about 1.4 billion USD. Intel CEO Brian Krzanich announced in April that his company would be cutting 11 percent of its workforce for an estimated loss of 12,000 jobs.
The Client Computing Group (CCG) that includes processors for both notebooks and PCs remained stable during this latest quarter. While sales have declined from 7.537 billion USD to 7.338 billion USD YoY, operating profits for the division are up from 1.601 billion USD to 1.911 billion USD during the same time frame.
Meanwhile, the Data Center Group (DCG) experienced a sales rise from 3.852 billion USD in Q2 2015 to 4.027 billion USD as of Q2 2016, but profits dropped from 1.843 billion USD to 1.765 billion USD YoY. The Internet of Things (IoT) division was lukewarm as sales rose from 559 million USD to 572 million USD YoY while profits dropped from 145 million USD to just 89 million USD.
Intel is expected to announce Kaby Lake products and further detail its long term plans at next month's IDF 2016.