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Teradata Reports 2018 First Quarter Results

- Better than expected first quarter revenue of $506 million

- Bookings mix shift to subscription moving faster than expected

- Recurring revenue increased 11 percent from the first quarter of 2017

- Repurchased 2.1 million shares during the first quarter for approximately $76 million

SAN DIEGO, May 3, 2018 /PRNewswire/ -- Teradata Corp. (NYSE: TDC) reported revenue of $506 million for the quarter ended March 31, 2018, compared to $491 million reported in the first quarter of 2017. Recurring revenue of $302 million was up 11 percent from the first quarter of 2017. Subscription booking mix was 62 percent in the quarter, significantly higher than the 40 percent - 50 percent anticipated. Teradata's first quarter year-over-year revenue comparison benefited from approximately 4 percentage points of foreign currency translation(1).

Teradata Corporation logo. (PRNewsFoto/Teradata)

Teradata reported a net loss under U.S. Generally Accepted Accounting Principles (GAAP) of $(7) million in the first quarter, or $(0.06) per share, which compared to a net loss of $(2) million, or $(0.02) per share, in the first quarter of 2017. Non-GAAP net income in the first quarter of 2018, which excludes stock-based compensation expense and special items, was $23 million, or $0.19 per diluted share, as compared to $37 million, or $0.28 per diluted share in the first quarter of 2017.(2) Non-GAAP earnings per share exceeded expectation and guidance for the quarter.  

"I am pleased with Teradata's strong momentum as we continue to execute our growth strategy. We exceeded our plan for revenue and earnings per share, and importantly, we attained these results while achieving a better rate of adoption of subscription licenses. Our increasing sales funnel and the accelerating shift to subscription are clear demonstrations of the value of Teradata to our customers," said Vic Lund, President and Chief Executive Officer, Teradata. "The Teradata team has performed an amazing accomplishment in driving Teradata's transformation, and I remain confident in our ability to continue to deliver our winning strategy in 2018."  

Gross Margin

For the first quarter of 2018, GAAP gross margin was 44.1 percent versus 45.8 percent for the first quarter of 2017. On a non-GAAP basis, excluding stock-based compensation expense and special items, gross margin for first quarter 2018 was 48.4 percent, versus 51.1 percent in the prior-year period.(2)

Operating (Loss)/Income

Operating loss reported under GAAP in the first quarter of 2018 was $(4) million compared to breakeven in the first quarter of 2017. On a non-GAAP basis, excluding stock-based compensation expense and special items, operating income was $35 million in the first quarter of 2018, versus $59 million in the first quarter of 2017(2). As expected, non-GAAP operating income was lower due to the shift to subscription and strategic transformation investments as compared to the prior year.

Income Taxes

Teradata's GAAP tax rate was 12.5 percent for the first quarter of 2018, as compared to 0 percent in the first quarter of 2017. Excluding special items, Teradata's non-GAAP tax rate was 25.8 percent in the first quarter of 2018 versus 35.1 percent in the first quarter of 2017.(2) The decrease in the non-GAAP effective tax rate was largely due to the decrease in the U.S. statutory rate effective in 2018 as a result of recently enacted U.S. tax reform.

Cash Flow

Teradata generated $184 million of cash from operating activities in the first quarter of 2018, compared to $248 million in the same period in 2017.  In the first quarter of 2018, Teradata generated $156 million of free cash flow (cash from operating activities less capital expenditures and additions to capitalized software), compared to $230 million in the first quarter of 2017.(3) The expected decrease in cash from operating activities and free cash flow was due to the company's ongoing transition to subscription-based purchasing options, which result in the company collecting less cash in the current period as customers pay over time, the higher expense run rate from prior-year strategic transformation investments, and timing of cash collections.    

Balance Sheet

Teradata ended the first quarter of 2018 with $939 million in cash. As of the end of the first quarter of 2018, the company repatriated cash to pay off its revolving credit facility and fund share repurchases. Teradata plans to repatriate the majority of its remaining offshore cash across the balance of 2018 to fund share repurchases and to retain the remainder for general corporate purposes. 

As of March 31, 2018, Teradata had total debt of $525 million, all of which was outstanding under a term loan. Teradata had no borrowings under its $400 million revolving credit facility as of March 31, 2018.

During the first quarter of 2018, Teradata repurchased $76 million of the company's common stock, or approximately 2.1 million shares.

Guidance

Due to higher than expected bookings mix shift to subscription-based transactions, where revenue is recognized over time rather than up front in the current period, Teradata now expects 2018 full year revenue to be approximately $2.15 billion to $2.18 billion. Also, due to the accelerating shift in mix to subscription, Teradata expects revenue in the second quarter of 2018 to be in the $520 million to $530 million range.

Teradata also now expects full-year 2018 GAAP earnings per share to be $0.58 to $0.64 as a result of the faster than anticipated shift of bookings mix to subscription-based transactions. On a non-GAAP basis, which excludes stock-based compensation expense and special items, earnings per share is expected to be in the $1.40 to $1.46 range(2).  GAAP (loss)/earnings per share in the second quarter of 2018 is expected to be in the $(0.02) to $0.00 range. Non-GAAP earnings per share in the second quarter is expected to be in the $0.17 to $0.19 range(2)

Earnings Conference Call

A conference call is scheduled today at 2:00 p.m. (PT) to discuss the company's first quarter 2018 results. Access to the conference call, as well as a replay of the call, is available on Teradata's website at investor.teradata.com.

Supplemental Financial Information

Additional information regarding Teradata's operating results is provided below as well as on the Investor Relations page of Teradata's website.

1. The impact of currency is determined by calculating the prior-period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule on the Investor Relations page of the company's web site at investor.teradata.com, which is used to determine revenue on a constant currency ("CC") basis.

Revenue



(in millions)




For the Three Months Ended March 31



2018


2017


% Change as
Reported


% Change in
Constant Currency


Recurring

$302


$273


11%


7%


Perpetual software licenses and hardware

69


90


(23%)


(27%)


Consulting services

135


128


5%


0%


  Total revenue

$506


$491


3%


(1%)











Americas

$264


$267


(1%)


(1%)


International

242


224


8%


(1%)


   Total revenue

$506


$491


3%


(1%)


2. Teradata reports its results in accordance with GAAP. However, as described below, the company believes that certain non-GAAP measures such as non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per diluted share, or EPS, all of which exclude certain items (as well as free cash flow) are useful for investors. Our non-GAAP measures are not meant to be considered in isolation or as substitutes for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP.   

The following tables reconcile Teradata's actual and projected results and EPS under GAAP to the company's actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. Our management internally uses supplemental non-GAAP financial measures, such as gross profit, operating income, net income and EPS, excluding certain items, to understand, manage and evaluate our business and support operating decisions on a regular basis. The company believes such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the company's ongoing operations, (2) are useful for period-over-period comparisons of such operations and results, that may be more easily compared to peer companies and allow investors a view of the company's operating results excluding stock-based compensation expense and special items, (3) provide useful information to management and investors regarding present and future business trends, and (4) provide consistency and comparability with past reports and projections of future results.

Teradata's reconciliation of GAAP to non-GAAP results included in this release.

(in millions, except per share data)








For the Three Months






Ended March 31



Gross Profit:


2018


2017


%
Chg.


 GAAP Gross Profit


$ 223


$ 225


(1%)


   % of Revenue


44.1%


45.8%












  Excluding:








   Stock-based compensation expense


4


3




   Acquisition, integration and reorganization related costs


3


2




   Capitalized Software ASC 985-20


15


21




 Non-GAAP Gross Profit   


$ 245


$ 251


(2%)


   % of Revenue


48.4 %


51.1%












Operating (Loss)/Income:








 GAAP Operating Loss


$ (4)


-


-


   % of Revenue


(0.8%)


0.0%












Excluding:








   Stock-based compensation expense


19


15




   Amortization of acquisition-related intangible assets


2


2




   Acquisition, integration and reorganization related costs


3


21




   Capitalized Software ASC 985-20


15


21




Non-GAAP Operating Income   


$ 35


$ 59


(41%)


   % of Revenue


6.9%


12.0%




























Net (Loss)/Income:








 GAAP Net Loss


$(7)


$(2)


(250%)


   % of Revenue


(1.4%)


(0.4%)












  Excluding:








   Stock-based compensation expense


19


15




   Amortization of acquisition-related intangible assets


2


2




   Acquisition, integration and reorganization related costs


3


21




   Capitalized Software ASC 985-20


15


21




   Income tax adjustments*


(9)


(20)




 Non-GAAP Net Income   


$23


$37


(38%)


   % of Revenue


4.5%


7.5%




 

 


Three Months




Ended March 31




Earnings Per Share:

2018


2017


2018 Q2

Guidance

2018 FY

Guidance

    GAAP (Loss)/Earnings Per Share

$(0.06)


$(0.02)


$(0.02) - 0.00

$0.58 - 0.64

 

 Excluding:







   Stock-based compensation expense

0.16


0.12


0.13

0.55

   Amortization of acquisition-related

      intangible assets

0.02


0.02


0.01

0.05

   Acquisition, integration and reorganization
      related costs

0.02


0.16


0.01

0.03

   Capitalized Software ASC 985-20

0.12


0.16


0.10

0.40

   Income tax adjustments*

(0.07)


(0.15)


(0.06)

(0.21)

   Impact of dilution **

-


(0.01)


-

-

 Non-GAAP Diluted Earnings Per Share

$0. 19


$0.28


$0.17 - 0.19

$1.40 – 1.46


* Represents the income tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP income based on the applicable jurisdictional statutory tax rate of the underlying item. Including the income tax effect assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the company's ongoing operations. As a result of these adjustments, the company's non-GAAP effective tax rate for the first quarter of 2018 was 25.8% and 35.1% in the first quarter of 2017.


** Represents the impact to earnings per share as a result of moving from basic to diluted shares.

3. As described below, the company believes that free cash flow is a useful non-GAAP measure for investors. Teradata defines free cash flow as cash provided/used by operating activities less capital expenditures for property and equipment, and additions to capitalized software. Free cash flow does not have a uniform definition under GAAP and therefore, Teradata's definition may differ from other companies' definitions of this measure. Teradata's management uses free cash flow to assess the financial performance of the company and believes it is useful for investors because it relates the operating cash flow of the company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures for, among other things, investment in the company's existing businesses, strategic acquisitions, strengthening the company's balance sheet, repurchase of the company's stock and repayment of the company's debt obligations, if any. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. This non-GAAP measure is not meant to be considered in isolation, as a substitute for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP.


 

For the Three Months
Ended March 31



(in millions)



2018


2017







Cash provided by operating activities (GAAP)

$184


$248


   Less capital expenditures for:





      Expenditures for property and equipment

(26)


(16)


      Additions to capitalized software

(2)


(2)


           Total capital expenditures

(28)


(18)


Free Cash Flow (non-GAAP measure)(3)

$156


$230


Note to Investors

This news release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally relate to opinions, beliefs and projections of expected future financial and operating performance, business trends, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially, including the factors discussed in this release and those relating to: the global economic environment and business conditions in general or on the ability of our suppliers to meet their commitments to us, or the timing of purchases by our current and potential customers; the rapidly changing and intensely competitive nature of the information technology industry and the data analytics business, including the increased pressure on price/performance for data analytics solutions and changes in customer's buying patterns; fluctuations in our operating results, including as a result of the pace and extent to which customers shift from perpetual to subscription-based licenses; our ability to realize the anticipated benefits of our business transformation program or other restructuring and cost saving initiatives; risks inherent in operating in foreign countries, including the impact of economic, political, and legal conditions, and foreign currency fluctuations; risks associated with data privacy, cyber-attacks and maintaining secure and effective internal information technology and control systems; the timely and successful development, production or acquisition and market acceptance of new and existing products and services; tax rates and the impact of recent tax reform legislation; turnover of workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful exploitation of new acquisition and alliance opportunities ; recurring revenue may decline or fail to be renewed; the impact on our business and financial reporting from changes in accounting rules, including Topic ASC 606; and other factors described from time to time in Teradata's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K and subsequent quarterly reports on Forms 10-Q, as well as the company's annual report to stockholders. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Teradata          

Teradata helps companies achieve high-impact business outcomes. With a portfolio of cloud-based business analytics solutions, architecture consulting, and industry leading big data and analytics technology, Teradata unleashes the potential of great companies. Visit teradata.com.

http://www.twitter.com/teradata 
http://www.facebook.com/Teradata 
http://www.linkedin.com/company/teradata 
http://www.youtube.com/user/teradata

Teradata and the Teradata logo are trademarks or registered trademarks of Teradata Corporation and/or its affiliates in the U.S. and worldwide.

 

INVESTOR CONTACT:  

Gregg Swearingen        

Teradata

(937) 242-4600

gregg.swearingen@teradata.com

MEDIA CONTACT:

Benjamin Hendricks

Teradata

(919) 522-2978

ben.hendricks@teradata.com

 

 








Schedule A





























TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF LOSS

(in millions, except per share amounts - unaudited)













For the Period Ended March 31





Three Months





2018


2017


% Chg


Revenue


















Recurring 



$        302


$        273


11%


Perpetual software licenses and hardware



69


90


(23%)


Consulting services



135


128


5%











Total revenue



506


491


3%











Gross profit


















Recurring



212


206




% of Revenue



70.2%


75.5%




Perpetual software licenses and hardware



21


29




% of Revenue



30.4%


32.2%




Consulting services



(10)


(10)




% of Revenue



(7.4%)


(7.8%)













Total gross profit



223


225




% of Revenue



44.1%


45.8%













Selling, general and administrative expenses



152


155




Research and development expenses



75


70













Loss from operations



(4)


-




% of Revenue



(0.8%)


-













Other expense, net



(4)


(2)













Loss before income taxes



(8)


(2)




% of Revenue



(1.6%)


(0.4%)













Income tax benefit



(1)


-




% Tax rate



12.5%


-













Net loss



$          (7)


$          (2)




% of Revenue



(1.4%)


(0.4%)













Net loss per common share









Basic 



$      (0.06)


$      (0.02)




Diluted



$      (0.06)


$      (0.02)













Weighted average common shares outstanding









Basic



121.4


130.4




Diluted



121.4


130.4













 







Schedule B


























TERADATA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions -  unaudited)





















March 31,


December 31,






2018


2017


Assets
















Current assets








Cash and cash equivalents




$              939


$            1,089


Accounts receivable, net




451


554


Inventories




43


30


Other current assets




97


77










Total current assets




1,530


1,750










Property and equipment, net




172


162


Capitalized software, net




107


121


Goodwill




401


399


Acquired intangible assets, net




21


23


Deferred Income Taxes




58


57


Other assets




66


44










Total assets




$           2,355


$            2,556










Liabilities and stockholders' equity
















Current liabilities








Current portion of long-term debt




$                68


$                60


Short-term borrowings




-


240


Accounts payable




110


74


Payroll and benefits liabilities




110


173


Deferred revenue




532


414


Other current liabilities




93


102










Total current liabilities




913


1,063










Long-term debt




456


478


Pension and other postemployment plan liabilities




111


109


Long-term deferred revenue




72


85


Deferred tax liabilities




9


4


Other liabilities




150


149










Total liabilities




1,711


1,888










Stockholders' equity








Common stock




1


1


Paid-in capital




1,350


1,320


Accumulated deficit




(637)


(579)


Accumulated other comprehensive loss




(70)


(74)










Total stockholders' equity




644


668










Total liabilities and stockholders' equity




$           2,355


$            2,556










 





Schedule C




















TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions - unaudited)









For the Period Ended March 31



Three Months




2018


2017


Operating activities






Net loss


$                 (7)


$                 (2)








Adjustments to reconcile net loss to net cash provided






  by operating activities:






Depreciation and amortization


34


36


Stock-based compensation expense


19


16


Deferred income taxes


(5)


(8)


Changes in assets and liabilities:






Receivables


83


106


Inventories


(13)


(6)


Current payables and accrued expenses


(27)


(44)


Deferred revenue


124


145


Other assets and liabilities


(24)


5








Net cash provided by operating activities


184


248








Investing activities






Expenditures for property and equipment


(26)


(16)


Additions to capitalized software


(2)


(2)








Net cash used in investing activities


(28)


(18)








Financing activities






Repurchases of common stock


(60)


(43)


Repayments of long-term borrowings


(15)


(8)


Repayments of credit facility borrowings


(240)


-


Other financing activities, net


10


7








Net cash used in financing activities


(305)


(44)








Effect of exchange rate changes on cash and cash equivalents


-


4








(Decrease) increase in cash, cash equivalents and restricted cash


(149)


190


Cash, cash equivalents and restricted cash at beginning of period


1,089


974








Cash, cash equivalents and restricted cash at end of period


$              940


$            1,164








 









Schedule D
































TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions - unaudited)













For the Three Months Ended March 31




2018


2017


% Change
As
Reported


% Change
Constant
Currency (2)


Segment Revenue




















Americas 


$       264


$       267


(1%)


(1%)


International


242


224


8%


(1%)












Total segment revenue


506


491


3%


(1%)












Segment gross profit




















Americas 


147


151






% of Revenue


55.7%


56.6%
















International 


98


100






% of Revenue


40.5%


44.6%
















Total segment gross profit


245


251






% of Revenue


48.4%


51.1%
















Reconciling items(1)


(22)


(26)
















Total gross profit


$       223


$       225






% of Revenue


44.1%


45.8%


























(1)  Reconciling items include stock-based compensation, capitalized software, amortization of 


acquisition-related intangible assets and acquisition, integration and reorganization-related items.


(2)  The impact of currency is determined by calculating the prior period results using the current-year 


     monthly average currency rates.  










 

 

Cision

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    Motley Fool

    Why American Airlines Group Stock Jumped 6% -- Then Gave Most of It Back

    Shares of American Airlines Group (NASDAQ: AAL) popped 6.4% in early trading Wednesday before retracting to close the day up less than 1% -- just 0.9%, to be precise. An upgrade assigned to the stock by Deutsche Bank appears to be the primary reason for the move. A Deutsche Bank analyst upgraded American Airlines stock from "hold" to "buy" on Wednesday, as we're told by our friends at StreetInsider.com.

  • A former GE exec who trained new managers found that almost all of them were making the same mistake
    Business
    Business Insider

    A former GE exec who trained new managers found that almost all of them were making the same mistake

    Beth Comstock is the former vice chair of General Electric. Comstock would hand out "permission slips" authorizing employees to take risks — but she also said it's important for people to stop hiding behind their excuses. Beth Comstock doesn't tolerate excuses.

  • Netflix is ditching freeloaders from subscriber forecasts after volatile stock moves
    News
    MarketWatch

    Netflix is ditching freeloaders from subscriber forecasts after volatile stock moves

    After two consecutive off-the-mark quarters, falling short of its own forecasts for subscriber growth, Netflix Inc. hopes to put an end to the big swings in its stock price with some changes to its accounting. In kicking off tech’s earnings season Tuesday, Netflix (NFLX)reported better-than-expected subscriber growth in the quarter, leading to an 11% jump in its shares in after-hours trading. Three months ago, Netflix reported weaker-than-expected subscriber growth, sending its stock tumbling about 12% in the next trading day.

  • Finance
    InvestorPlace

    Pfizer Layoffs: Company to Offer Early Retirement Deals Ahead of Cuts

    A new round of Pfizer layoffs (NYSE:PFE) has been announced by the pharmaceutical giant as the company is seeking to offer early retirement deals to some of its workers before gearing itself to carry out jobs cuts this year. “As we prepare for growth we are creating a simpler more efficient structure which will affect some managerial roles and responsibilities.

  • Finance
    Investopedia

    Berkshire Is Undervalued, Says JPMorgan

    Berkshire Hathaway Inc.'s ( BRK.B) Class B shares are cheap if you apply the same metrics that its CEO Warren Buffett does to value companies, according to JPMorgan. In a research note, reported on by CNBC, analyst Sarah DeWitt said Berkshire, a company that investors have historically struggled to value properly because of its many moving parts, suddenly appears to be attractively priced when factoring in all the profits made by the stocks held in its $200 billion equity portfolio into its earnings. “Look-through earnings” take into account current period earnings that show up in financial statements, together with other sources of earnings expected in the long run. This method is used by Buffett as a way to appreciate that companies sometimes retain earnings after paying dividends and later invest them at a higher rate of return.

  • Bernie Sanders, Elizabeth Warren question Jeff Bezos about Whole Foods' seemingly anti-union stance
    Finance
    American City Business Journals

    Bernie Sanders, Elizabeth Warren question Jeff Bezos about Whole Foods' seemingly anti-union stance

    Sens. Elizabeth Warren and Bernie Sanders are pressing Amazon.com Inc. CEO Jeff Bezos to hand over an anti-union video allegedly sent to Whole Foods Market Inc. employees. Warren, D-Mass., and Sanders, I-Vt., wrote in a letter sent Wednesday that the video could have violated labor laws if employees were warned that stores could close as a result of unionization.

  • Why Winnebago Stock Surged 17% -- Then Gave Most of It Back
    Business
    Motley Fool

    Why Winnebago Stock Surged 17% -- Then Gave Most of It Back

    Shares of RV-maker Winnebago Industries (NYSE: WGO) leapt 17.6% in early trading after the company reported earnings Wednesday, before retreating to a more recent price up just 5% from yesterday's close. For its fiscal fourth quarter of 2018, Winnebago reported $0.94 per share in earnings, exceeding expectations for $0.86, on sales of $536.2 million. Motorhome sales slowed, but towables were a bright spot for Winnebago in Q4.

  • Facebook under fire as US officials back removal of Zuckerberg as chairman
    Business
    The Telegraph

    Facebook under fire as US officials back removal of Zuckerberg as chairman

    Mark Zuckerberg came under fresh pressure after four US officials called for a boardroom shakeup at Facebook. Three state treasurers and a top official from New York have joined a shareholders’ motion to install an independent chairman at Facebook, claiming the move would improve governance and accountability. In June, Boston-based Trillium Asset Management, which holds $11m in Facebook shares, launched an effort to split the role of chairman and chief executive at Facebook following scandals over the hacking of personal data from millions of users and claims of hate speech and election-rigging.

  • What Intel’s Low Relative Strength Index Means for Investors
    Finance
    Market Realist

    What Intel’s Low Relative Strength Index Means for Investors

    The stock market has been volatile in October. Intel (INTC) and Nvidia (NVDA) stocks fell below their 200-day moving averages in the latest stock market sell-off, which was triggered by the Fed’s interest rate hike. On October 11, Intel’s traded volume was 43 million, which is well above its three-month average daily volume of 24.75 million.

  • Ken Langone: 'Who the hell in their right frame of mind would be buying bonds now?'
    Business
    Yahoo Finance

    Ken Langone: 'Who the hell in their right frame of mind would be buying bonds now?'

    Billionaire investor and philanthropist Ken Langone, the founder of The Home Depot (HD) and chairman of Invemed Associates, argued that there’s some “big time” structural problems in the market right now. Because if we are on a trajectory of raising rates that means, and if it keeps going that way and I don’t know how high it will go, and it keeps going that way then all the sudden the guy who bought those bonds is going to be looking at a fairly decent loss,” Langone said.

  • Intel restructures manufacturing organization
    Finance
    American City Business Journals

    Intel restructures manufacturing organization

    Chip giant Intel is restructuring its technology and manufacturing business group as it chases more connected device markets and grapples with delays on its next chip generation. In a memo to employees, reviewed by the Business Journal, Group President and Chief Engineering Officer Murthy Renduchintala described splitting the technology and manufacturing business into three groups. The three new groups are technology development, manufacturing and operations and global supply chain.