Intel suspends stock buyback in face of COVID-19 pandemic

intel sign
Intel announces it is suspending its stock repurchases due to the coronavirus outbreak. (Intel)

In a Tuesday filing, Intel said it has suspended its planned stock repurchase in light of the COVID-19 pandemic. The chipmaker also cautioned that the coronavirus outbreak could have a material impact on its business going forward.

"To date, Intel has kept its factories operational while safeguarding the health and safety of employees and continues to have a strong balance sheet. Intel’s management believes the suspension, while conservative, is prudent given uncertainty regarding the length and severity of the pandemic," Intel said in its filing. "The suspension of stock repurchases will not impact dividend payments to stockholders and the company has the ability to reinstate repurchases as circumstances warrant."

In October, Intel announced a plan to repurchase $20 billion in shares over the next 15 to 18 months. Intel has repurchased a total of approximately $7.6 billion in shares in the fourth quarter of 2019 and first quarter of 2020, prior to the suspension.

SPONSORED BY GOOGLE CLOUD

Webinar: Remote Post Production In The Cloud

Video production companies across the world have traditionally been tethered to physical facilities, but with the advent of covid-19, remote post production capabilities are more important than ever. Join this webinar to learn more about how video producers can utilize Google Cloud infrastructure, along with partner applications, to develop a remote post production suite that brings your artists and editors together, no matter where they are.

Intel said in its filing that the spread of COVID-19 has caused it to modify its business practices, including employee travel, employee work locations and the cancellation of conferences.

It also said it has significant manufacturing operations in the U.S., Ireland, Israel, China, Malaysia, and Vietnam, and that it can't predict the impact of COVID-19 on its operations and delivery to its customers due to quarantines, port and border closures and reduced availability of air transport.

RELATED: AT&T decides now’s not a good time for share buybacks

Last week AT&T announced it was canceling its accelerated share repurchase agreement with Morgan Stanley to repurchase $4 billion worth of shares during the second quarter.

Suggested Articles

C Spire is installing more than 33 miles of fiber across four counties in Mississippi in order to provide faster broadband speeds to rural areas.

There's no doubt that SASE has picked up steam this year after Gartner coined the phrase last year, and now MEF has joined the SASE fray.

The deal includes delivering managed network services to over 700 sites in 91 countries.