SANTA CLARA, Calif. - Intel Corporation (NASDAQ:INTC), currently valued at $94.71 billion, has appointed Eric Meurice and Steve Sanghi, two semiconductor industry veterans, to its board of directors as independent directors, the company announced today. The appointments come at a crucial time for Intel, which according to InvestingPro data, faces significant challenges with negative free cash flow and profitability concerns. The appointments are effective immediately and aim to strengthen the board's expertise amid Intel's ongoing business transformation.
Eric Meurice, known for his tenure as president, chief executive officer, and chairman of ASML Holding (AS:ASML) N.V. from 2004 to 2013, brings a history of significant value creation for shareholders and was a key player in the development of advanced lithography technologies. His appointment comes as Intel's stock has declined by 28.2% over the past six months, with revenue of $54.25 billion in the last twelve months. His previous roles include executive positions at Thomson's TV division, Dell (NYSE:DELL), ITT (NYSE:ITT) Semiconductors, and Intel.
Steve Sanghi, who recently stepped in as interim chief executive officer and president of Microchip Technology (NASDAQ:MCHP), served as the company's CEO from 1991 to 2021. During his leadership, Microchip Technology not only maintained profitability for over 120 quarters but also saw its market value surge from approximately $10 million to around $44 billion. Sanghi's experience also includes operational roles at Waferscale Integration Inc. and Intel.
Frank D. Yeary, interim executive chair of the Intel board, emphasized the value of the new appointees, stating that their "deep technical expertise, executive experience and operational rigor" make them excellent additions. He highlighted their proven track records and the fresh perspectives they will contribute as Intel focuses on customer delivery, operational efficiency, and profitability improvement.
Meurice expressed enthusiasm about joining Intel's board during a period of rapid technological innovation and business transformation. Similarly, Sanghi conveyed his eagerness to apply his experience to Intel's significant corporate transformation, recognizing the company's potential across its product and foundry businesses.
Intel, an industry leader and innovator in semiconductor design and manufacturing, continues to drive forward its mission to address customer challenges and contribute to societal progress through advanced technology. The appointments of Meurice and Sanghi to the board are part of Intel's strategic efforts to navigate its future endeavors.
This move, based on a press release statement, underscores Intel's commitment to leveraging industry expertise as it navigates a dynamic market landscape. With an Altman Z-Score of 1.45 indicating financial stress, InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report, helping investors understand the company's transformation journey in greater detail.
In other recent news, Intel is undergoing significant leadership changes following the departure of CEO Pat Gelsinger, who is set to receive a severance package worth approximately $12 million. The company has appointed David Zinsner and Michelle Johnston Holthaus as interim co-CEOs during the search for a permanent leader. Meanwhile, Intel's board is considering several candidates for the CEO role, including former board member Lip-Bu Tan.
Furthermore, Chinese industry associations have advised local companies to be cautious about purchasing chips from the U.S., potentially affecting major U.S. chip manufacturers like Intel. Evercore ISI has maintained an In Line rating for Intel, while BofA Securities has maintained an Underperform rating, both firms citing ongoing challenges for the company.
Lastly, Intel's recent earnings report reveals a third-quarter revenue of $13.3 billion, a 4% sequential increase. The company's programmable chips division, Altera, also reported a 14% sequential increase in revenue, reaching $412 million for the quarter ending in September. These are among the recent developments impacting Intel.
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