Intel Corp (NASDAQ:INTC, ETR:INL) reported mixed earnings for the second quarter, with revenue ahead of Wall Street estimates as profits were impacted by one-time charges.
Revenue for the quarter was $12.9 billion, flat year-over-year and above estimates of $11.87 billion.
The company missed on earnings by $0.11, reporting a loss per share of $0.10 compared to estimates of $0.01.
Intel recorded about $800 million in non-cash impairment and accelerated depreciation charges related to certain tools and technology assets, plus around $200 million in one-time costs for the quarter.
The company said it has completed the majority of its planned headcount reductions, which aimed to reduce its workforce by approximately 15%. It intends to end the year with 75,000 employees.
The company also said it is cancelling planned projects in Germany and Poland and that it intends to consolidate its assembly and test operations in Costa Rica into its larger sites in Vietnam and Malaysia. Further, Intel said it plans to slow the pace of construction at its Ohio facility to align spending with market demand.
“Our operating performance demonstrates the initial progress we are making to improve our execution and drive greater efficiency,” Intel CEO Lip-Bu Tan said in a statement.
David Zinser, Intel CFO, added: “The changes we are making to reduce our operating costs, improve our capital efficiency and monetize non-core assets are having a positive impact as we work to strengthen our balance sheet and position the business for the future.”
For the third quarter, Intel guided revenue between $12.6 billion and $13.6 billion, at the midpoint of $13.1 billion ahead of estimates of $12.65 billion.
Shares of Intel moved 0.9% lower afterhours to about $22 after closing about 3.7% lower on Thursday.