Boston, MA, 11/18/2013 (wallstreetpr) – Global semiconductor manufacturer and industry leader Intel Corporation (NASDAQ:INTC) revealed plans to lay off around 300 jobs at its Malaysian units, apart from offering market-competitive packages to impacted personnel. This decision follows Intel’s recent September decision to shut down its oldest American factory located in Hudson, Massachusetts leading to about 700 job cuts.
The industry leader and one of technology’s oldest and most valued companies, Intel reported earnings for the third quarter with $0.58 a share, beating analyst expectations of $0.53 a share over revenue of $13.5 billion. The conglomerate has been paying a uniform 3.7% dividend yield for six quarters now and its latest earnings per share, which signify profitability, is about $1.85. With recent net revenues of $13.5 billion from its third quarter, a 5% increase over a year earlier, Intel scaled down sales and revenue estimates to between $13.2 billion and $14.2 billion for the fourth quarter.
This has worried investors as the technology pioneer has been showing signs of struggle in the wake of slowing revenue growth and strategic changes in business focus propelled primarily by a fast-vanishing market for its prime revenue generators – the personal computers. The technologically superior tablets and smartphones have steadily dented Intel’s sales revenue and bottom line. Adding to its woes, Intel has not made significant headway in its ambitious cable-television-via-the-Internet project codenamed OnCue and is considering selling it off to leading American telecommunications carrier Verizon (NYSE:VZ), among others, with a strategic alliance expected by the year end.
Despite slowing revenues, the technology leader continues to see growth from its current key revenue drivers of the third quarter. Its data centre group saw 40% sales revenue spikes subsequent to Intel’s recent transition to cloud computing. Its sales in the high-end computing segments jumped up about 27%, while the storage segment saw a more moderate 20% increase. Intel stocks have remained rock-steady above the $24 mark on NASDAQ for over three weeks now. The chipmaker’s shares closed trading at $24.52 on November 15, up by $0.135 from the previous close of $24.385. After-hours trading stayed around the closing figure.
