The semiconductor company recorded an impairment of $2.1bn resulting from the VLSI litigation
Intel has reported a net income of $3.36bn for the first quarter of 2021 (Q1 2021), a 41% decline, compared to $5.66bn for the same quarter of the previous year.
The company had to bear $2.2bn on restructuring and other charges in Q1 2021 that ended 27 March 2021, compared to $162m on the same in Q1 2020.
The restructuring and other charges include an impairment of $2.1bn pertaining to VLSI litigation over patent infringement. The company said that it is in strong disagreement with the jury’s verdict given in March 2021 and plans to appeal.
Intel reported diluted earnings per share (EPS) of $0.82 in the reported quarter, which is down by 37%, compared to an EPS of $1.31 in the same quarter of 2020.
Net revenue of the US semiconductor company was $19.67bn, which is a 1% decrease, compared to $19.82bn of net revenue posted for Q1 2020.
Intel’s Data Center Group saw its net revenue for Q1 2021 fall by 20% from $6.99bn in Q1 2020 to $5.56bn.
Its Internet of Things (IoT) division earned net revenue of $1.29bn for the reported quarter, a 4% increase compared to $1.13bn made in Q1 2020. Mobileye, which is part of the unit, increased its net revenue by 48% from $254m in Q1 2020 to $377m in Q1 2021.
Intel’s Client Computing Group had an 8% year-over-year (YoY) growth with net revenue of $9.61bn in the reported quarter, compared to $8.71bn made in Q1 2020.
The company’s Programmable Solutions Group had a 6% drop YoY in its net revenue to $486m in Q1 2021.
Intel CEO Pat Gelsinger said: “Intel delivered strong first-quarter results driven by exceptional demand for our leadership products and outstanding execution by our team.
“The response to our new IDM 2.0 strategy has been extraordinary, our product roadmap is gaining momentum, and we’re rapidly progressing our plans with re-invigorated focus on innovation and execution.
“This is a pivotal year for Intel. We are setting our strategic foundation and investing to accelerate our trajectory and capitalise on the explosive growth in semiconductors that power our increasingly digital world.”
Last month, the company announced an investment of nearly $20bn to build two new semiconductor factories in Arizona, US, as part of its significant manufacturing expansion plans.