Intel Suspends Its Stock Buyback Program

Eric J. Savitz Coronavirus INTC Intel Semiconductors Industrial Electronics Industrial Goods Technology Corporate Funding Share Capital Ownership Changes Acquisitions/Mergers/Shareholdings Capacity/Facilities Corporate Actions Corporate/Industrial News Share Buybacks/Redemptions Political/General News Respiratory Tract Diseases Health Medical Conditions Outbreaks/Epidemics Novel Coronaviruses Infectious Diseases Content Types Factiva Filters C&E Industry News Filter I/XFFX INTC M/IDU M/TEC N/BBK N/CAC N/CNW N/DJN N/GEN N/HLT N/NWS N/SHC N/TNM N/WER Barrons.com Barrons Blogs Wires Fortune 500 DJIA Dow Jones Industrial Average CODES_REVIEWED Companies Coronavirus Technology author Eric J. Savitz author|Eric J. Savitz topicid 8582 name Eric J. Savitz extractedtext Eric J. Savitz rank 1 codetype author code eric_j_savitz nameformat surname_first author Eric J. Savitz id Eric J. Savitz barrons_display_subject BARCORONA barrons_display_subject|BARCORONA codetype BARRONS_DISPLAY_SUBJECT canbedisplaysubject true value BARCORONA source MANUAL status modified name Coronavirus code BARCORONA co INTL co|INTL symbol INTC country US codetype co displayname Intel extractedtext Intel source MANUAL code intc name Intel significance prominent exchange U.S.: Nasdaq exchangeisocode XNAS chartingsymbol STOCK/US/XNAS/INTC fcode INTL status modified onlinesignificance prominent company INTC company|INTC name Intel significance PROMINENT djn INTC djn|INTC significance prominent name INTC why about source FACTIVA occurs true fcode INTC codetype djn code intc onlinesignificance prominent djn M/IDU djn|M/IDU name M/IDU why lineage source FACTIVA fcode M/IDU codetype djn code m_idu djn M/TEC djn|M/TEC name M/TEC why lineage source FACTIVA fcode M/TEC codetype djn code m_tec djn N/BBK djn|N/BBK significance prominent name N/BBK why about source FACTIVA fcode N/BBK codetype djn code n_bbk onlinesignificance prominent djn N/CAC djn|N/CAC significance prominent name N/CAC why about source FACTIVA fcode N/CAC codetype djn code n_cac onlinesignificance prominent djn N/SHC djn|N/SHC significance prominent name N/SHC why about source FACTIVA fcode N/SHC codetype djn code n_shc onlinesignificance prominent djn N/NWS djn|N/NWS significance prominent name N/NWS why about source FACTIVA fcode N/NWS codetype djn code n_nws onlinesignificance prominent djn N/TNM djn|N/TNM significance prominent name N/TNM why about source FACTIVA fcode N/TNM codetype djn code n_tnm onlinesignificance prominent djn N/CNW djn|N/CNW name N/CNW why lineage source FACTIVA fcode N/CNW codetype djn code n_cnw djn N/GEN djn|N/GEN name N/GEN why lineage source FACTIVA fcode N/GEN codetype djn code n_gen djn N/HLT djn|N/HLT name N/HLT why lineage source FACTIVA fcode N/HLT codetype djn code n_hlt djn I/XFFX djn|I/XFFX significance prominent name I/XFFX why about source FACTIVA fcode I/XFFX codetype djn code i_xffx onlinesignificance prominent djn N/DJN djn|N/DJN codetype djn value N/DJN source DJN-CONTROL status modified inactivebydefault true name N/DJN code n_djn djn N/WER djn|N/WER codetype djn value N/WER source DJN-CONTROL status modified inactivebydefault true name N/WER code n_wer editorial-seo-id intel-suspends-stock-buyback-recession-sec-filing-dividend-coronavirus-51585062591 editorial-seo-id|intel-suspends-stock-buyback-recession-sec-filing-dividend-coronavirus-51585062591 first_publish_headline Intel Suspended Its Stock Buyback Program and Warns of a Potential Recession first_publish_headline|Intel Suspended Its Stock Buyback Program and Warns of a Potential Recession flow NWREGULAR flow|NWREGULAR codetype FLOW value NWREGULAR source MANUAL status modified name Wires code NWREGULAR flow Barrons.com flow|Barrons.com codetype FLOW value Barrons.com source MANUAL status modified name Barrons.com code online name Online title Product code Barrons.com flow Barrons Blogs flow|Barrons Blogs codetype FLOW value Barrons Blogs title Product source MANUAL status modified name Barrons Blogs code Barrons_Blogs headline Intel Suspended Its Stock Buyback Program and Warns of a Potential Recession headline|Intel Suspended Its Stock Buyback Program and Warns of a Potential Recession idx xf500 idx|xf500 significance prominent name Fortune 500 why about source FACTIVA fcode xf500 codetype idx code xf500 onlinesignificance prominent in i34531 in|i34531 name Semiconductors why association source FACTIVA fcode i34531 codetype in code i34531 in iindele in|iindele name Industrial Electronics why lineage source FACTIVA fcode iindele codetype in code iindele in iindstrls in|iindstrls name Industrial Goods why lineage source FACTIVA fcode iindstrls codetype in code iindstrls in itech in|itech name Technology why lineage source FACTIVA fcode itech codetype in code itech index Dow Jones Industrial Average index|Dow Jones Industrial Average symbol DJIA country US codetype index displayname Dow Jones Industrial Average extractedtext Dow Jones Industrial Average source MANUAL code djia name Dow Jones Industrial Average significance prominent exchange Dow Jones Global exchangeisocode DOW JONES GLOBAL chartingsymbol INDEX/US/DOW JONES GLOBAL/DJIA status modified onlinesignificance passing-mention inset inset-1 inset|inset-1 responsive layout wrap media media-2 media|media-2 responsive layout wrap softcrop Horizontal imphotoid im-119348 location https://images.barrons.com/im-119348/?size=1.5 media media-1 media|media-1 softcrop Horizontal imphotoid im-119348 location https://images.barrons.com/im-119348/?size=1.5 ns cshbuy ns|cshbuy significance prominent name Share Buybacks/Redemptions why about source FACTIVA fcode cshbuy codetype ns code cshbuy onlinesignificance prominent ns cactio ns|cactio significance prominent name Corporate Actions why about source FACTIVA fcode cactio codetype ns code cactio onlinesignificance prominent ns c171 ns|c171 significance prominent name Share Capital why about source FACTIVA fcode c171 codetype ns code c171 onlinesignificance prominent ns c24 ns|c24 significance prominent name Capacity/Facilities why about source FACTIVA fcode c24 codetype ns code c24 onlinesignificance prominent ns gout ns|gout significance prominent name Outbreaks/Epidemics why about source FACTIVA fcode gout codetype ns code gout onlinesignificance prominent ns gsars ns|gsars significance prominent name Novel Coronaviruses why about source FACTIVA fcode gsars codetype ns code gsars onlinesignificance prominent ns c17 ns|c17 significance prominent name Corporate Funding why about source FACTIVA fcode c17 codetype ns code c17 onlinesignificance prominent ns c181 ns|c181 significance prominent name Acquisitions/Mergers/Shareholdings why about source FACTIVA fcode c181 codetype ns code c181 onlinesignificance prominent ns c18 ns|c18 name Ownership Changes why lineage source FACTIVA fcode c18 codetype ns code c18 ns ccat ns|ccat name Corporate/Industrial News why lineage source FACTIVA fcode ccat codetype ns code ccat ns gcat ns|gcat name Political/General News why lineage source FACTIVA fcode gcat codetype ns code gcat ns gcold ns|gcold name Respiratory Tract Diseases why lineage source FACTIVA fcode gcold codetype ns code gcold ns ghea ns|ghea name Health why lineage source FACTIVA fcode ghea codetype ns code ghea ns gmed ns|gmed name Medical Conditions why lineage source FACTIVA fcode gmed codetype ns code gmed ns gspox ns|gspox name Infectious Diseases why lineage source FACTIVA fcode gspox codetype ns code gspox ns ncat ns|ncat name Content Types why lineage source FACTIVA internalsymbol true fcode ncat codetype ns code ncat ns nfact ns|nfact name Factiva Filters why lineage source FACTIVA internalsymbol true fcode nfact codetype ns code nfact ns nfcpin ns|nfcpin name C&E Industry News Filter why lineage source FACTIVA internalsymbol true fcode nfcpin codetype ns code nfcpin nwchain SB510073332613690248088045862812431015587961 nwchain|SB510073332613690248088045862812431015587961 relay SYND relay|SYND name Syndication source EXPANDER value SYND codetype RELAY code synd status modified statistic CODES_REVIEWED statistic|CODES_REVIEWED name CODES_REVIEWED value CODES_REVIEWED codetype STATISTIC code CODES_REVIEWED subject BARCORONA subject|BARCORONA ruleid BARCORONA codetype SUBJECT value BARCORONA canbedisplaysubject true name Coronavirus title Coronavirus status modified code BARCORONA subject BARCOMP subject|BARCOMP ruleid BARCOMP codetype SUBJECT value BARCOMP canbedisplaysubject true name Companies title Companies status modified code BARCOMP subject BARINDTECH subject|BARINDTECH ruleid BARINDTECH codetype SUBJECT value BARINDTECH canbedisplaysubject true name Technology title Technology status modified code BARINDTECH wordcount 531 wordcount|531 id facebook id|facebook news_tab_url https://www.barrons.com/articles/intel-suspends-stock-buyback-recession-sec-filing-dividend-coronavirus-51585062591 Photograph by Justin Sullivan/Getty Images Intel Suspended Its Stock Buyback Program and Warns of a Potential Recession Intel Suspended Its Stock Buyback Program and Warns of a Potential Recession Intel Suspends Its Stock Buyback Program and Warns of a Potential Recession

The chip maker has suspended its stock repurchase plan to conserve its resources for other needs as it copes with the impact of the coronavirus pandemic.

Intel Suspends Its Stock Buyback Program

The chip maker said it isn’t changing its dividend rate and still has capacity to reinstate purchasers “as circumstances warrant.”

https://www.sec.gov/ix?doc=/Archives/edgar/data/50863/000119312520083209/d886280d8k.htm mailto:eric.savitz@barrons.com Intel Suspended Its Stock Buyback Program and Warns of a Potential Recession By Eric J. Savitz Photograph by Justin Sullivan/Getty Images Intel said measures taken globally to contain the spread of the coronavirus “have impacted and may further impact our workforce and operations.”

Intel has suspended its stock repurchase plan to conserve its resources for other needs as it copes with the impact of the coronavirus pandemic.

In a filing with the SEC, the chip maker said that, to date, “Intel has kept its factories operational while safeguarding the health and safety of employees and continues to have a strong balance sheet.” But the company said the suspension of the buyback plan “is prudent given uncertainty regarding the length and severity of the pandemic.”

Intel said it isn’t changing its dividend rate—the stock (ticker: INTC) yields about 2.9%—and still has capacity to reinstate purchasers “as circumstances warrant.”

The company announced a $20 billion repurchase plan in October 2019. It bought $7.6 billion in shares in the 2019 fourth quarter and the 2020 first quarter combined, before the suspension. Intel also noted that it has added a Covid-19 related section to the risk factors in a prospectus supplement filed with the SEC.

In that disclosure, Intel said measures taken globally to contain the spread of the coronavirus “have impacted and may further impact our workforce and operations, the operations of our customers, and those of our respective vendors and suppliers.” It noted that it has “significant manufacturing operations in the U.S., Ireland, Israel, China, Malaysia, and Vietnam, and each of these countries has been affected by the outbreak and taken measures to try to contain it.”

Intel also said that “the outbreak has significantly increased economic and demand uncertainty. It is likely that the current outbreak or continued spread of Covid-19 will cause an economic slowdown, and it is possible that it could cause a global recession.”

The company said it has modified its business practices in response to the virus but that “there is no certainty that such measures will be sufficient to mitigate the risks posed by the virus, and our ability to perform critical functions could be harmed.”

“The degree to which Covid-19 impacts our results will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume.”

Amid a broad market rebound Tuesday morning, Intel shares were up 6% to $52.58. The Dow Jones Industrial Average was up 7.3%.

Write to Eric J. Savitz at eric.savitz@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.