06:26 AM EDT, 04/03/2024 (MT Newswires) -- Intel ( INTC ) shares declined early Wednesday after the chipmaker restated operating losses for its foundry business, as it reorganizes its financial reporting structure to save costs and provide greater transparency.

The company's manufacturing division, Intel Foundry, recorded a full-year 2023 operating loss of $6.96 billion, wider than the $5.17 billion loss logged a year ago, it said in a late Tuesday regulatory filing with the US Securities and Exchange Commission. The unit's overall revenue came in at $18.91 billion versus $27.49 billion in the 2022 financial year.

Intel's ( INTC ) stock slipped 5.1% in premarket trading, having been down more than 12% so far this year.

The chip giant will implement a new operating model which it expects to enable the foundry business to "achieve profitable growth" and "unlock unrealized value." Intel Foundry is projected to see operating margin improvement and drive further expansion, while its losses are anticipated to "peak" this year. Intel ( INTC ) is also aiming for the unit to achieve break-even operating margins midway between now and the end of 2030.

The foundry unit has more than $15 billion of lifetime deal value committed from external customers, according to Intel ( INTC ). The company also appointed Lorenzo Flores as chief financial officer of the division, effective April 8.

"Intel Foundry is going to drive considerable earnings growth for Intel ( INTC ) over time," Chief Executive Patrick Gelsinger said during a late Tuesday call with analysts to discuss the new operating structure. This year "is the trough for foundry operating losses."

Along with Intel Foundry, Intel ( INTC ) will report results for Intel Products, comprising its client computing group, data center and artificial intelligence and network and edge segments. Results will also be reported for Altera, formerly Intel's ( INTC ) programmable solutions group, and Mobileye, the company's majority-owned autonomous vehicle systems business.

"This model is designed to unlock significant cost savings, operational efficiencies and asset value," Intel CFO David Zinsner said in a statement. "As it begins to take hold, we expect to accelerate on our path toward achieving our ambition of 60% non-GAAP gross margins and 40% non-GAAP operating margins in 2030."

Price: 41.59, Change: -2.35, Percent Change: -5.35