Don't listen to the $0.04/share loss number, that is heavily adjusted with all sorts of accounting tricks.
And all this even slightly beating the already extremely lowered revenue expectations.
A few more quarters like this and Intel is finished!
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I listened in on the earnings call. The analysts pounded Dave and Pat over and over about the damage to margins caused by factory underloading and pre PRQ product builds. You could tell by the way Pat and Dave responded that this is a very very big problem. I just don't see any way that this company will be able to generate a positive return on invested capital, even if the process nodes get competitive, the company starts executing on products and in some alternative universe the IFS business is able to compete with $TSM. For these reasons, I am a 'SELL' on $INTC.
@1nvu - It's never been done before because it's fcking lunacy, that's what it is. There's simply not enough time and not enough volume to provide meaningful defect feedback and fix yield process issues for 2 or 3 nodes, much less 4 or 5. Plus, you spend most of the time and a lot of your capacity producing non-revenue generating pre-PRQ material, so you're basically spending 2 or 3 times as much money on product that's not gonna really give you any revenue.
Loss is all about financial engineering. The key message is that all of the investment going in manufacturing. 4 in 5 is a really really capital intensive task. Never done before in history of semiconductor manufacturing.
The last time Q earnings were in the $11B range was in 2010 when costs were less than half and headcount at 2/3 of where they are now. Q1 2023 financial performance is a total and utter disgrace to this company.
Yeah so they’re building more…. Brilliant.
never ending factory underload charges... 155 days of inventory on hand... turn out the lights in the factory and re-open in the Fall...
Looking at it, Intel did amazing. It looks like a sure thing. The complete opposite of a disaster from every possible angle. The US is in a recession. Interest rates are through the roof. The entire PC industry took a hit, but Intel is a shining start. When the recession ends, and all the nodes are online, watch out!
- $1.785 Billion in negative operating cash flows... Holy smokes batman...