Chip-maker Intel suffered a 25 per cent decline in consumer chip sales in the second quarter, along with revenue of $15.3 billion, down 22 per cent year over year (YoY).
Its profits nosedived as it lost half a billion dollars in the April-June period -- a 109 per cent decline in profit from $5.1 billion it saw in Q2 last year.
Intel shares sank as much as 10 per cent in extended trading on Thursday.
The company CEO Pat Gelsinger said that the results "were below the standards we have set for the company and our shareholders".
"We must and will do better. The sudden and rapid decline in economic activity was the largest driver, but the shortfall also reflects our own execution issues," Gelsinger said in a statement late on Thursday.
He said that the company is embracing "this challenging environment to accelerate our transformation."
"Some of our largest customers are reducing inventory levels at a rate not seen in the last decade," Gelsinger said on the earnings call with analysts.
Earlier this month, Gartner reported that the global PC market has already declined 12.6 per cent compared to last year.
Intel has now revised its full-year revenue guidance to $65 billion to $68 billion.
The company's data centre business dropped 16 per cent in sales and a massive 90 per cent in operating income as well.
"We have an obligation to remain vigilant and to respond to the changing business conditions, while not losing sight of our long-term goals and opportunities," said Gelsinger.
Dave Zinsner, Intel chief financial officer, said that it was a challenging quarter negatively impacted by multiple factors, like uncertain market conditions impacted by inflation and a much larger than expected OEM inventory correction as customers adjust to this new macroeconomic environment.
"We expect Q2 and Q3 to be the financial bottom for the company," he noted.