We had an inventory buildup in the quarter that we’re working our way through. We have some underutilized factories, and we are taking steps to address those.” Intel reported a net income of $1.2 billion on revenue of $14 billion for its first quarter, down from $4.5 billion in profit and $17.1 billion in sales during the same period last year
Intel’s first quarter was not as successful as expected; CEO Pat Gelsinger revealed this to analysts when discussing their financials for the period ending March 31st 2021. He noted that there were two main factors contributing to Intel’s poor performance: an inventory glut and underused factories which resulted in a decrease from last year’s profits of 4.5 Billion USD with 17 Billion USD revenue compared to 1.2 Billion USD with 14 Billion USD respectively this time around
Gelsinger stated they were actively addressing these issues by taking measures such as reducing stock levels while also attempting to optimize factory usage so they can make up lost ground over time “We had an inventory buildup in the quarter that we’re working our way through,” he said “We have some underutilized factories, and we are taking steps to address those.”
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