Intel Corp INTC shares are trading lower in Tuesday’s after-hours session after the company outlined a new financial framework for its foundry business.
Revamping Financial Reporting
What Happened: After the market close on Tuesday, Intel announced a new financial reporting structure focused on enhancing cost discipline and returns through increased transparency, accountability, and incentives.
New Operating Segment
Intel Foundry, a newly established segment, encompasses foundry technology development, manufacturing, supply chain, and services. Starting Q1 2024, Intel will align segment results with groups like Client Computing, Data Center, Intel Foundry, and others.
Growth Projections
Intel expects foundry operating losses to peak in 2024, targeting break-even operating margins by 2030. The Foundry business holds a lifetime deal value exceeding $15 billion with external clients.
Strategic Vision
Intel’s CFO, Dave Zinsner, stated, “This model is crafted to drive cost savings, operational efficiencies, and asset value, pushing us towards 60% non-GAAP gross margins and 40% non-GAAP operating margins by 2030.”
Leadership Addition
Lorenzo Flores joins as CFO of Intel Foundry, bringing nearly 30 years of semiconductor and technology financial experience, previously serving as CFO of Xilinx.
Investor Engagement
An investor webinar will showcase Intel’s new financial framework for the Foundry business at 4:30 p.m. ET.
Market Response
Intel’s stock declined by 3.60% to $42.39 in after-hours trading post-announcement.
Photo: Monticello/Shutterstock
