Clearly Intc is grossly mismanaged and a lot of people ought to be fired starting with the Chairman, CEO, President, on down. Intc has spent over $100 billion on R&D in the past 10 years, yet they totally miss handhelds--and still have no strategy for mobile. In addition they spent over $4 billion last year on contra revenue on tablets--for what? They spent another $4 billion buying back stock in the past six months--at inflated prices when compared to the current stock price. They increased the dividend during last quarter to only issue a Revenue Shortfall and Earnings Warning on March 12 of this quarter. The stock is down almost $8 since December and these fools suggest the company might get back to some sort of growth mode sometime in the future.
If you look at the stock trading range for the past 15 years, it's clear that this company is in the wilderness.
In 2000 an analyst asked a question of Intc that still has yet to be answered "What's Next." Three CEO's later, that question still remains unanswered!
A little history regarding the management of this company. Barrett--how did the billions spent on developing and marketing the infamous "Itanium" chip work out for Intc? I think HPQ was involved and this chip situation went on for years. Not certain the chip is still in the Intc portfolio and inventory any longer. Otellini spent time and energy on issues outside the pervu of the company including twice on interactive TV. However his famous remark about mobile being "evolutionary" really established that he had no clue of the paradigm tide change that hit Intc and overwhelms it still to today.. The current CEO really is unsure where things are headed so his mantra is throw everything against the wall and hopefully something will stick. In the past few days Intc has issued a Revenue and Earnings warning. Next when the first quarter is reported in April, the concern will shift to Inventory Oversupply, which will shift the discussion from one quarter to the whole year and possibly beyond. The company is need of a major Vision and organizational restructuring that conforms to that Vision. Paying all these Executives with stock options--slopping at the Trough--coupled with stock buy backs that support all that nonsense given the performance of this company over the past fifteen years is the height of arrogance and an outrage against the interests of the stockholder.
CNBC just showed that INTC first quarter revenue has been stagnant for past five years. Actually, going back 15 years on an inflation adjusted basis, revenue has been stagnant. Yet the company dishes out stock options, etc. for this lousy performance! Take a look at the Executives feeding at the trough with options cash in exchange for this abysmal performance! What's the difference between the current CEO and the past two CEO's--not much when you look at the financial performance of the company. None have had a vision for growing the company. Barrett spent billions on a RISC chip that went nowhere. Otellini spent billions on acquisitions that have underwhelmed--plus he totally missed the hand held paradigm change. The current CEO
Is hoping something sticks by throwing a lot of stuff in the air. The common thread is they all are products of long service to INTC--and the company desperately needs to bring in new outside blood and leadership. Anyone with half a brain can see INTC is stuck in a rut because the old INTC way of doing things is not working.
INTC is being hit by a tide of disruptive technology--yet they do not grasp nor understand it! Fifteen years of this Joy and counting!
They waited way too long to get rid of Otellini--and Bryant was kicked upstairs to become Chairman. Intc now needs to fire the CEO, President, and CFO and make massive changes in the organizational structure. Will it happen--probably not. Should it happen--you bet! The company is groping for a vision and doing buy backs that are now under water, increasing the Dividend when a few short months later announcing a revenue and Earnings Warning, who is in charge of this ship? Instead of spending money to support stock options for Executives, the money would be better spent on growing the company. How many billions have been spent on buy backs over the past 15 years only to see all that money squandered.
All the share buy backs and stock options for executives over the past fifteen years--what has it gotten shareholders--Absolutely Nothing! Revenues adjusted for inflation have been stagnant. Has the company management invested wisely--that too is a resounding No! How much money has the company invested in wrong headed endeavors initiated by the past three CEO's. No one of them has really positioned the company for growth--and how do you miss entirely the transition to hand-held? Somebody on the Board really needs to hit the Refresh and straighten out what is a grossly mismanaged company--the current is totally clueless.