The world's largest computer chip maker, Intel, has reported its first loss in 22 years after setting aside funds to pay a European Union fine.
Second-quarter sales beat analysts' estimates. The net loss was $398 million, or 7 cents a share, Santa Clara, California-based Intel said today in a statement.
Revenue fell to $8.02 billion, compared with the $7.29 billion predicted by analysts in a Bloomberg survey.
The European Union fined Intel $1.45 billion in May, saying the company used illegal rebates to thwart competitors. Intel, which accounts for about 80 per cent of the personal-computer processor market, is appealing the decision. A rebound in orders is helping investors look past that one-time expense.
In April, Intel said it was planning for second-quarter sales of about $7.1 billion. The company didn't give a forecast for profitability at that time, saying the economy made it too difficult to predict.
PC sales may drop 4.5 per cent this year as unemployment increases and companies pare budgets, according to IDC, a research firm in Framingham, Massachusetts. That would be the first decline since 2001, after the dot-com bust left a glut of PCs.
Intel will hold a conference call with analysts at 5.30pm New York time.
Bloomberg