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Intel profits drop 25 percent year-over-year as CEO Paul Otellini gives his final earnings report

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Intel (STOCK)
Intel (STOCK)

Intel just released details on its Q1 2013 financials, and the company had another tough quarter — profits of $2.05 billion represented a 25 percent decline over Q1 2012 profits. Unfortunately, outgoing CEO Paul Otellini has recently presided over several quarters of major profit decline for the company he has worked at for 40 years: Q4 2012 profits were down 27 percent year-over-year, while Q3 2012 profits were down 14 percent. This comes as Intel struggles with what Otellini called "market softness" in the PC space and a continued lack of a real presence in mobile — on its earnings call, he said that "smartphones don't move the needle for us from a revenue perspective."

Intel faired better by other metrics, but it was still a story of decline — revenues of $12.6 billion marked a small two percent decline year-over-year, and both its PC client group and data center group lost revenue compared to 2012 levels. As for Otellini's successor, Intel announced at the top of its earnings call that it wouldn't field any questions about its upcoming CEO vacancy, but it did note that it still hopes to have the position filled by the time Otellini retires at Intel's annual shareholders meeting in May. When Intel does settle on a new CEO, he or she will certainly have their work cut out for them as they try to push the company's profits back towards growth.