There is a reason why companies try to release any significant news either long before the markets open or after they close. It is to let the investors understand and analyze its impact thoroughly so that it is rightly accounted in the pricing of that stock the next market session. If it is released during the trading hours, it may cause volatility to the price and may even turn to be counterproductive. Something like that happened with The American chipmaker Intel.
Intel said it was the victim of a hacker who stole financially sensitive information from its corporate website on Thursday, prompting the company to release its earnings statement ahead of schedule. It published its formal earnings announcement upon discovering the problem, six minutes before the market closed. Intel’s shares rose more than 6 per cent on Thursday, including almost 2 per cent in the final 15 minutes of trading. Here is the report.
“an attacker had obtained advanced details about a strong earnings report it was due to publish after the stock market closed” “An infographic was hacked off of our PR newsroom site,” … “We put [our earnings] out as soon as we were aware.”George Davis, chief financial officer.
Though put out all of a sudden, the report was good for Intel which saw revenues of $20 Billion, exceeding October guidance by $2.6 Billion dollars and Earnings Per Share at $1.52 compared to forecasts of $1.1. More here.
But it turned out that there wasn’t any hack and it got released unintentionally by someone on the inside. It released the following statement on Friday: –
“the URL of our earnings infographic was inadvertently made publicly accessible before publication of our earnings and accessed by third parties. Once we became aware of the situation we promptly issued our earnings announcement. Intel’s network was not compromised and we have adjusted our process to prevent this in the future.”
This is still a tough time for Intel.
- Its current CEO – Bob Swan is set to be replaced by Pat Gelsinger – CEO of VM Ware – who was also the FIRST Chief Technology Officer of Intel.
- It lost a major client – Apple, who started making their own chips for their computers.
- It lost its position as America’s largest chip maker to Nvidia.
- It is facing tough competition from AMD and Nvidia.
Amidst all these concerns, there is some hope for Intel as the to-be CEO is an Intel Veteran with a Tech background, who might know more about how this industry works, unlike the outgoing CEO.