Intel management remains in ‘prove-it mode,’ says Oppenheimer

After Intel hosted a capital allocation call that included the company reducing its quarterly dividend by two-thirds, from 36.5c per share to 12.5c per share, and management reaffirming the previously issued Q1 outlook, Oppenheimer analyst Rick Schafer said the firm views the dividend reduction as "little surprise" considering current business conditions and cash burn. The firm, which acknowledges initiatives taken by Intel to right-size process leadership and regional manufacturing, still sees management being "in prove-it mode" as the company’s multi-year turnaround efforts play out and it maintains a Perform rating on Intel shares.