Intel reports loss on EU antitrust fine
- Source: Xinhua
- [13:36 July 15 2009]
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Intel Corp. on Tuesday posted a quarterly loss as the world's largest computer chip maker paid the antitrust fine of 1.45 billion U.S. dollars from the European Union.
Counting the fine payment, Intel lost 398 million dollars or 7 cents per share in the second quarter ended on June 27, the company said.
The European Commission imposed the heavy antitrust fine on Intel in May, saying the company engaged in illegal practices such as giving rebates to computer manufacturers on condition that they bought all or almost all of their chips from Intel.
Excluding the effects of the European Commission fine, Intel earned 1 billion dollars or 18 cents per share in the second quarter, 36 percent lower than the profit of 28 cents per share the same period last year but still beating analysts' estimates of8 cents per share.
Intel's second-quarter sales grew 12 percent over the previous quarter to 8 billion dollars, though down 15 percent compared with the year-ago period.
"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," Paul Otellini, Intel's chief executive officer, said in a statement.
Looking ahead, Intel said it now expects the third-quarter sales to be in the range of 8.1 billion to 8.9 billion dollars, higher than analysts' average estimates.