All posts from Zacks
Zacks in Our Research. Your Success.,

Intel (INTC) Announces Departure of Two Veteran Executives

Intel Corporation INTC has suffered the brunt of a seemingly perennial decline in PC shipments and an unsuccessful attempt to build a position in mobile devices. When things go wrong as they sometimes will, we may see drastic changes in management positions. But it’s not clear whether the recent departures of senior executives are the result of such changes implemented by the company or whether they represent regular corporate affairs.

The chip giant announced on Monday the departure of Dough Davis, head of its PC Group and Kirk Skaugen, head of its Client Computing Group (CCG).

These are voluntary departures but could still be a setback for the company as both had served for a long time and were leaving at a time when Intel is pushing hard to reshape its business.

Faced with continuous decline in PC sales, Intel is trying hard to penetrate the mobile-device market. Meanwhile, CEO Brian Krzanich has been emphasizing on bringing in external management skills.

In November, the company recruited former executive vice president of QUALCOMM Incorporated QCOM, Venkata “Murthy” Renduchintala as president of its Client and IoT businesses and Systems Architecture Group. The new appointment shrank roles of Davis and Skaugen and might be one of the reasons for their departure.

Davis, 54, has been working with the company for 32 years. The veteran has played significant roles in hardware, software and manufacturing during his long tenure. Lately, he was the senior vice president and general manager of the IoT Group.

Intel stated that Davis “has been considering for some time” his retirement “and he has decided that he would like to devote more of his time to family, friends, and other interests.”

Skaugen, 45, on the other hand, has been with the company for 25 years. Most recently the senior vice president was in charge of the Client Computing Group. He had previously led Intel’s PC and Data Center Group.

About Skaugen, Krzanich and Renduchintala commented, “His strategy of segmentation and innovation in our core businesses has been a strong asset to Intel.”

Skaugen’s last working day with Intel is Apr 8 and Davis will retire at the end of this year.

Intel said that Skaugen will be replaced by VP Navin Shenoy while Davis’s replacement is yet to be announced.

At present, Intel carries a Zacks Rank #3 (Hold). Some better ranked stocks in the broader technology sector are Mellanox Technologies, Ltd. MLNX and QuickLogic Corporation QUIK as they hold a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
QUALCOMM INC (QCOM): Free Stock Analysis Report
QUICKLOGIC CORP (QUIK): Free Stock Analysis Report
MELLANOX TECH (MLNX): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research