Today Intel reported its first quarter financial performance, with revenue of $12.6 billion, net income of $2 billion and earnings per share of $0.40, attributed to what the company said was poor PC demand.
The market had expected Intel to post revenues of $12.6 billion, and earnings per share of $0.44.
Intel is a company caught in the crosswinds of the larger PC market. As the traditional PC market slows, it suffers from decreasing demand. Overall PC shipments fell by between 10% and nearly 14% in the quarter, according to analysts. In a statement, Intel President Paul Otellini said that his company is â€śworking with our customers to introduce innovative new products across multiple operating systems.â€ť
It seems that analysts are also worried about the company in light of this being CEO Paul Otelliniâ€™s last earnings call. The question after the companyâ€™s May 16 annual meeting where Otellini will step down is who will be named as his successor and steer the company back to itsÂ prosperousÂ days. As of right now, no one has been named.
Back when the news of Otelliniâ€™s departure was announced, Intel shared statistics of the 40-year veteran of the companyâ€™s tenure as CEO:
- Intel generated $107 billion from its operations
- It made $23.5 billion in dividend payments
- It increased the quarterly dividend by 181 percent, from $0.08 to $0.225
However, one of the things that he wonâ€™t be remembered for is mobile, which is an area analysts say Intel needs the next leader to focus on if the company wishes to become more successful. Mobile technologies such as tablets and smartphone as slowly leaving the chip manufacturer â€” the Microsoft Surface has one version powered by Intel, while another is using rival ARM chips. Appleâ€™s iPads are also not using Intel products.
Sure, Intel has made some improvements in the mobile space, perhaps most notably forming a partnership with Google to be a part of its Android operating system, but itâ€™s still far from where investors and analysts hoped it would be.
Looking ahead to Q2 2013, the company forecasts that it will see revenue of $12.9 billion (plus or minus $500 million).
In normal trading, Intel rose more than 2 percent, beating a largely upbeat market. In after hours trading, the company is at $21.87.
Top Image Credit:Â ROBYN BECK/AFP/Getty Images