Intel unexpectedly slashed its full-year forecast as it reported its first earnings under a new CEO

April 26 - semiconductor giant Intel (intc) reports first-quarter earnings after hours on Thursday in the United States.Despite the better than expected data, the company surprised the market by cutting its full-year guidance, sending Intel shares down 7 percent in after-hours trading and as much as 9 percent at one point.

Intel reported adjusted first-quarter earnings of 89 cents per share, compared with analysts' expectations of 87 cents per share.Revenue was $16.1 billion in the first quarter, compared with analysts' expectations of $16.03 billion.Full-year revenue is expected to be $69 billion, compared with analysts' expectations of about $71.5 billion, and analysts' expectations of $71.34 billion.Adjusted earnings per share for the second quarter are expected to be about 89 cents, compared with analysts' expectations of $1.01.Second-quarter revenue is expected to be about $15.6 billion, compared with analysts' expectations of $16.85 billion.

But Intel's data center revenue fell more than expected, falling 6 percent to $4.9 billion, while analysts expected a 2.5 percent drop to $5.1 billion, according to FactSet.

It was also Intel's first earnings report since CEO Bob Swan took over in January.Mr Morse was promoted to chief financial officer of Intel in 2016, but took over the role on an interim basis last year after Mr Kochi was sacked over a scandal involving employees.

Mr Morse said: "the first-quarter results were slightly better than we had expected in January.We delivered a strong portfolio of high-performance products, kept costs under control, accelerated the 10-nanometer process, and overcame challenges in the NAND storage pricing environment.Looking forward to the full year, we are slightly cautious, although we expect market conditions to improve in the second half of the year.Our team is committed to expanding market opportunities, accelerating innovation, improving execution, and promoting the company's culture."" our goal is to invest at key technology turning points that allow us to play a greater role in customer success while generating greater returns for shareholders." "

On the morning of April 17, Intel announced its exit from the 5G smartphone modem business and completed an assessment of 4G and 5G modem opportunities in PCS, iot devices and other data-centric devices.The company said it was pulling out of the market for 5G mobile modems after determining that there was "no clear profit model," which would make it more dependent on the data center business.Intel dominates the market for chips that power servers.

Among the data centers group (DCG), the cloud business grew 5 percent, while revenue from the communications services unit fell 4 percent and revenue from the corporate and government departments fell 21 percent, the report showed.

Another problem for Intel is that the company doesn't produce enough cpus to meet the needs of personal computers.Earlier Gartner reported that Intel CPU shortages since last year have dragged down the overall PC market recovery.The server and personal computer markets unexpectedly returned to growth in the second half of last year, putting pressure on Intel's supply.To meet this challenge, Intel last year spent a record $15bn on capital expenditure, mainly to boost capacity in its manufacturing base.The company reported a 4 percent increase in its pc-centric business, in part due to increased demand for games and high-performance products.

Intel shares were down 1.89 percent at Thursday's close of $57.61, giving the company a market value of about $259.168 billion.Intel shares are up 12 percent over the past year, but in comparison, the s&p 500 has nearly doubled.