Intel Corporation’s (NASDAQ:INTC) CFO and Interim CEO, Bob Swan, in a conference call with analysts indicated that the company does not yet have a permanent CEO, but they were optimistic to get one. The company indicated that although they had revenue growth of 9% they nonetheless missed sales targets and they expect slower growth in 2019.
Search for permanent CEO
Swan stated that the board is in the process of evaluating potential candidates for one of the biggest open jobs. The company has been without a permanent CEO for seven months, and they are taking time to identify the right choice.
Swan said that he was convinced that the board is doing its best to name a new CEO soon whom the management team and company employees will support to take the company forward.
Slowing revenue growth
The company reported that their Q4 revenue fell short of the previously stated guidance. The company had a projection of $71.2 billion, but they fell short and had revenue of $70.8 billion with $4.48 earnings per share. Intel has projected this year’s revenue to be around $71.5 billion with $4.35 earnings per share.
The revenue results misled investors which pushed Intel shares down by 7.5% after hours of trading. The company plans to be cautious in 2019 following Marco-economic and trade concerns that are growing as cloud service providers preferring capacity absorption to build thus leading to deterioration of prices.
In 2018, the company was caught unawares by a rebound in sales of the computer, but they have however boosted their capital by prioritizing production for servers as well as high-end PCs. The company has had a challenge in the IoT business as well as entry into the PC market.
Intel indicates that the data-center segment is their second largest revenue driver by sales and last year it earned them $6.1 billion in sales. On the other hand, the IoT segment fell short and dropped by 7% to $816 million. Their overall revenue grew to $18.66 billion, but the company reported a loss in the Q1 2019 as a result of Tax overhaul in the U.S.