INTC Intel Corporation

   By Stephen Nakrosis 
 

Intel Corp. (INTC) issued an open letter to "customers and partners" on Wednesday, offering its apologies for PC CPU shipment delays and saying "despite our best efforts, we have not yet resolved this challenge."

In the letter, signed by Michelle Johnston Holthaus, Intel's EVP General Manager, Sales, Marketing and Communications Group, Intel said "sustained market growth in 2019 has outpaced our efforts and exceeded third-party forecasts." The company said supply in its PC business is still "extremely tight," and it is operating "with limited inventory buffers."

The company said "This makes us less able to absorb the impact of any production variability, which we have experienced in the quarter," leading to the shipment delays.

Intel also said that in the face of strong demand it has "invested record levels of Capex increasing our 14mm wafer capacity this year while also ramping 10nm production."

The letter also said Intel representatives would be reaching out to customers to provide additional information.

Intel shares saw a slight loss after-hours. At 4:52 p.m. EST, they were trading 0.6% lower at $57.55. Volume in the late trading session topped 1.2 million shares. The company's stock ended the day's regular session with a 0.11% loss, to close at $57.90.

Year to date, the stock is up about 23%.

--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

November 20, 2019 17:13 ET (22:13 GMT)

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