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To: Return to Sender who wrote (92759)	8/1/2024 4:26:07 PM
From: Return to Sender	Read Replies (1) \| Respond to of 95663

Intel misses by $0.08, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; Suspending dividend starting in 4Q24 and announced cost reduction plan, including headcount reduction greater than 15% 4:08 PM ET 8/1/24 \| Briefing.com Reports Q2 (Jun) earnings of $0.02 per share, excluding non-recurring items, $0.08 worse than the FactSet Consensus of $0.10; revenues fell 0.8% year/year to $12.8 bln vs the $12.92 bln FactSet Consensus.Client Computing Group (CCG) revenue up 9% to $7.4 bln.Data Center and AI (DCAI) revenue down 3% to $3.0 bln.Intel Foundry up 4% to $4.3 bln.Cost Reduction Plan: As Intel nears the completion of rebuilding a sustainable engine of process technology leadership, it announced a series of initiatives to create a sustainable financial engine that accelerates profitable growth, enables further operational efficiency and agility, and creates capacity for ongoing strategic investment in technology and manufacturing leadership. The actions include structural and operating realignment across the company, headcount reductions, and operating expense and capital expenditure reductions of more than $10 billion in 2025 compared to previous estimates.Plan is focused on four key priorities:Reducing Operating Expenses: The company will streamline its operations and meaningfully cut spending and headcount, reducing non-GAAP R&D and marketing, general and administrative (MG&A) to approximately $20 billion in 2024 and approximately $17.5 billion in 2025, with further reductions expected in 2026. Intel expects to reduce headcount by greater than 15% with the majority completed by the end of 2024.Reducing Capital Expenditures: With the end of its historic five-nodes-in-four-years journey firmly in sight, Intel is now shifting its focus toward capital efficiency and investment levels aligned to market requirements. This will reduce gross capital expenditures* in 2024 by more than 20% from prior projections, bringing gross capital expenditures in 2024 to between $25 billion and $27 billion.Reducing Cost of Sales: The company expects to generate $1 billion in savings in non-variable cost of sales in 2025. Product mix will continue to be a headwind next year, contributing to modest YoY improvements to 2025's gross margin.Suspending Dividend: Suspending dividend starting in the fourth quarter of 2024. The company reiterates its long-term commitment to a competitive dividend as cash flows improve to sustainably higher levels.Co issues downside guidance for Q3, sees loss of -$0.03, excluding non-recurring items, vs. $0.31 FactSet Consensus; sees Q3 revs of $12.5-$13.5 bln vs. $14.43 bln FactSet Consensus. Sees Non-GAAP gross margin of 38.0%.