Intel posts second quarter loss of $398 million

The company had a net income of US$1.60 billion in the second quarter of June 2008, Intel said in a statement.

During the quarter Intel incurred charges of US$1.45 billion as the European Commision’s anti-trust fine, which impacted its earnings in the period, according to the statement.

Intel has been fined for using illegal anti-competitive practices to keep away its “only competitor” Advanced Micro Devices (AMD) and also reduce the consumer choice in the global market for ‘x86 chips’.

Net revenue declined to US$8.02 billion in the latest quarter from US$9.4 billion in the corresponding year ago period. However, the revenues of the company saw an increase of 12.30 per cent as compared to US$7.14 billion in the first quarter this year. “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,” Intel President and Chief Executive Officer Paul Otellini said.

The company’s “restructuring and asset management charges were US$91 million, better than the company’s expectations,” the company said in a statement.

During the quarter the company posted a net loss from equity investments and interest payments of US$38 million.

Intel’s revenue from microprocessors and chipsets was US$ 362 million, up 65 per cent sequentially. In the Asia Pacific region Intel’s revenue decreased to US$4.4 billion in the second quarter from US$4.8 billion in the year-ago period, while in America it dipped to US$1.69 billion in the latest quarter from US$1.98 in year-ago period.