John Fowler, Re: "For those who care, the losses from ICG, WCCG and "other" subtracted $723 million from IAG's excellent operating profit of $1,362 million for a net operating profit of $639 million."
To be fair, that includes, "a $106-million charge to cost of sales related to the decision to wind down Intel® Online Services, along with a $112-million write-off of acquired intangibles, primarily related to Xircom PC cards for wireline networking."
So that $723M loss was more like $505M due to operations, and it will likely be less than that without the Online Services in the future. Meanwhile, both the ICG and WCCG groups gained in revenue over the quarter, the former by 3.5%, and the latter by nearly 16%. Not bad for a quarter that otherwise disappointed. The WCCG group is actually getting more revenue with lower costs than it did for the second quarter of last year. The ICG group is slightly down in revenues, but much more down in costs.
So I can understand your continued impatience, but with this kind of slump, some businesses are bound to be worse than others. When things improve, though, I see these businesses becoming nice and profitable.
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