SANTA CLARA, Calif. -- Intel Corp.'s move to break out its financial results for the first time disclosed the company had a first-quarter operating loss of $1 billion in its communications and emerging chip segments.
In the first quarter of this year, Intel reported sales of $1.5 billion in these segments, which includes the company's Wireless Communications and Computing Group, the Communications Products Group, the Network Communications Group and the New Business Group.
This compares to an operating loss of $452 million on sales of $1.3 billion in the like period a year ago. In the fourth quarter of 2000, it reported an operating loss of $657 million on sales of $1.9 billion.
During the first quarter of 2001, the company set plans to combine the Networking Communications Group and the Communications Products Group into the new Intel Communications Group. The move was aimed to cut costs--and losses--in its communications chip and hardware operations.
Meanwhile, Intel's largest business--the Intel Architecture Group--reported an operating profit of $1.7 billion on sales of $5.1 billion in the first quarter. The Intel Architecture Group includes microprocessors, motherboards, and chip sets.
This compares to a profit of $3 billion on sales of $6.7 billion in the like period a year ago. It also reported a profit of $3.2 billion on sales of $6.9 billion in the fourth quarter of 2000.
The Santa Clara company painted a mixed picture for the first quarter. "Our microprocessor business appears to have stabilized and we expect to see normal seasonal patterns going forward from our current business level," said Craig R. Barrett, Intel's president and chief executive. "In our communications businesses, we are experiencing continued softness."
While Intel indicated that there were some positive signs in the second quarter, the company reported revenue of $6.7 billion in the first quarter, a 16% decline from the like period a year ago and down 23% sequentially.
For the first quarter, net income, excluding acquisition-related costs, was $1.1 billion, down 64% from the first period of 2000 and down 58% sequentially (see April 17 story).
First quarter earnings, excluding acquisition-related costs, were $0.16 per share, a decrease of 63% from $0.43 in the first quarter of 2000 and down 58% sequentially. The company was expected to earn $0.15 a share, according to estimates from First Call/Thomson Financial.
Including acquisition-related costs, in accordance with generally accepted accounting principles, first quarter net income was $485 million, an 82% decline from first period of 2000 and down 78% sequentially.
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