EU fine drops Intel's quarterly net income $2 billion
- 15 July, 2009 06:08
Intel on Tuesday reported that its net income for the second fiscal quarter of 2009 dropped US$2 billion year-over-year because of the hefty fine imposed on the chip maker by the European Commission.
The EC in May fined Intel EUR1.06 billion ($US1.44 billion) after finding it guilty of antitrust violations in the microprocessor market. Intel took a charge of $1.45 billion related to the fine.
The EC accused Intel of anti-competitive behavior and using its market position to dominate the microprocessor space. The investigation focused around Intel giving rebates to computer manufacturers in return for them buying microprocessors in bulk.
Including the charge, Intel reported a net loss of $US398 million on a GAAP basis, with loss per share of $0.07.
On a non-GAAP basis, Intel reported net income of $US1 billion and earnings per share of $0.18.
Net revenue for the quarter ended June 27 was $US8 billion, a drop of $1.4 billion compared to the previous year.
Despite the drop, net revenue rose sequentially by $US879 million compared to the first quarter of 2009, which Intel took as a positive sign for a stronger financial second half for the company.
"Intel's second-quarter results reflect improving conditions in the PC market segment with our strongest first- to second-quarter growth since 1988 and a clear expectation for a seasonally stronger second half," said Paul Otellini, Intel's CEO, in a statement.
The company has estimated revenue for the third quarter to be around $US8.5 billion.