Chip giant Intel said it made a loss for its second quarter and it blamed Europe for the loss.
Although it turned out profitably, the chip corporation said the $1.45 billion fine it got from Europe hurt it, big time.
It made a loss of $398 million, contrasting badly with the profit it made of $1.6 billion in the same quarter last year.
The European Union fine of $1.44 billion affected its profitability, and Intel is appealing against that decision.
The company decided to declare that fine in its profits,and after appeal, it might well make a profit.
Nevertheless, despite the EU decision, Intel said its gross margin fell in the financial quarter. Sales fell in every territory in the world Intel covers.
Intel has done a smart thing by absorbing the EU fine. It will be profitable quarter on quarter as time goes on, as it claws back the money.
We look forward to AMD’s results, which will come out real soon now.