Intel Reports Record First Quarter
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Intel Reports Record First Quarter

SANTA CLARA, Calif. — (BUSINESS WIRE) — April 13, 2010 — Intel Corporation today reported first-quarter revenue of $10.3 billion. The company reported operating income of $3.4 billion, net income of $2.4 billion and EPS of 43 cents.

“The investments we’re making in leading edge technology are delivering the most compelling product line-up in our history,” said Paul Otellini, Intel president and CEO. “These leadership products combined with growing worldwide demand and continued outstanding execution resulted in Intel’s best first quarter ever. Looking forward, we’re optimistic about our business as Intel products are designed into a variety of new and exciting segments.”

GAAP Financial Comparison

                                          Q1 2010                                           vs. Q4 2009                                           vs. Q1 2009  
Revenue                                         $10.3 billion                                           down 3%                                           up 44%  
Operating Income                                         $3.4 billion                                           up 38%                                           up 433%  
Net Income                                         $2.4 billion                                           up 7%                                           up 288%  
Earnings Per Share                                         43 cents                                           up 3 cents                                           up 32 cents  

Non-GAAP Financial Comparison

                                            Q1 2010                                       vs. Q4 2009
Revenue                                           $10.3 billion                                       down 3%
Operating Income                                           $3.4 billion                                       down 8%
Net Income                                           $2.4 billion                                       down 21%
Earnings Per Share                                           43 cents                                       down 12 cents
The settlement agreement with AMD of $1.25 billion and the related tax impacts of that charge are excluded from Q4 2009 results in this Non-GAAP comparison.

Q1 2010 Highlights (all comparisons sequential)

Business Outlook

The Outlook for the second quarter does not include the gain expected from the sale of our investment in Numonyx, nor does it include the effect of any other acquisitions, divestitures or similar transactions that may be completed after April 12th.

Q2 2010

Full-Year 2010

Status of Business Outlook

During the quarter, Intel’s corporate representatives may reiterate the Business Outlook during private meetings with investors, investment analysts, the media and others. From the close of business on May 28 until publication of the company’s second-quarter earnings release, Intel will observe a “Quiet Period” during which the Business Outlook disclosed in the company’s news releases and filings with the SEC should be considered as historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.

Risk Factors

The above statements and any others in this document that refer to plans and expectations for the second quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Many factors could affect Intel’s actual results, and variances from Intel’s current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be the important factors that could cause actual results to differ materially from the corporation’s expectations.

A detailed discussion of these and other factors that could affect Intel’s results is included in Intel’s SEC filings, including the report on Form 10-K for the fiscal year ended Dec. 26, 2009.

Earnings Webcast

Intel will hold a public webcast at 2:30 p.m. PDT today on its Investor Relations Web site at www.intc.com. A webcast replay and MP3 download will also be made available on the site.

Intel plans to report its earnings for the second quarter of 2010 on Tuesday, July 13, 2010. Immediately following the earnings report, the company plans to publish a commentary by Stacy J. Smith, vice president and chief financial officer at www.intc.com/results.cfm. A public webcast of Intel’s earnings conference call will follow at 2:30 p.m. PDT at www.intc.com.

Intel [NASDAQ: INTC], the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom and blogs.intel.com

Intel, the Intel logo, Intel Xeon, Intel Core, and Intel Atom are trademarks of Intel Corporation in the United States and other countries.

* Other names and brands may be claimed as the property of others.

INTEL CORPORATION
CONSOLIDATED SUMMARY STATEMENT OF OPERATIONS DATA
(In millions, except per share amounts)
       
Three Months Ended
March 27, March 28,
2010 2009
NET REVENUE $ 10,299 $ 7,145
Cost of sales   3,770   3,907
GROSS MARGIN   6,529   3,238
 
Research and development 1,564 1,317
Marketing, general and administrative   1,514   1,198
R&D AND MG&A 3,078 2,515
Restructuring and asset impairment charges - 74
Amortization of acquisition-related intangibles and costs   3   2
OPERATING EXPENSES   3,081

 

2,591
OPERATING INCOME 3,448 647
Gains (losses) on equity investments, net (31) (113)
Interest and other, net   29   95
INCOME BEFORE TAXES 3,446 629
Provision for taxes   1,004

 

-
NET INCOME $ 2,442 $ 629
 
BASIC EARNINGS PER COMMON SHARE $ 0.44 $ 0.11
DILUTED EARNINGS PER COMMON SHARE $ 0.43 $ 0.11
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
BASIC 5,529 5,573
DILUTED 5,681 5,634

INTEL CORPORATION
CONSOLIDATED SUMMARY BALANCE SHEET DATA
(In millions)
     
March 27, Dec. 26,
2010 2009
CURRENT ASSETS
Cash and cash equivalents $ 4,988 $ 3,987
Short-term investments 5,927 5,285
Trading assets 5,427 4,648
Accounts receivable, net 2,192 2,273
Inventories:
Raw materials 464 437
Work in process 1,473 1,469
Finished goods   1,049   1,029
2,986 2,935
Deferred tax assets 1,423 1,216
Other current assets   781   813
TOTAL CURRENT ASSETS   23,724   21,157
 
Property, plant and equipment, net 17,028 17,225
Marketable equity securities 926 773
Other long-term investments 4,326 4,179
Goodwill 4,452 4,421
Other long-term assets   5,317   5,340
TOTAL ASSETS $ 55,773 $ 53,095
 
CURRENT LIABILITIES
Short-term debt $ 330 $ 172
Accounts payable 1,912 1,883
Accrued compensation and benefits 1,377 2,448
Accrued advertising 843 773
Deferred income on shipments to distributors 653 593
Income taxes payable 916 86
Other accrued liabilities   2,881   1,636
TOTAL CURRENT LIABILITIES   8,912   7,591
 
Long-term income taxes payable 174 193
Long-term debt 2,052 2,049
Other long-term liabilities 1,735 1,558
Stockholders' equity:
Preferred stock - -
Common stock and capital in excess of par value 15,466 14,993
Accumulated other comprehensive income (loss) 414 393
Retained earnings   27,020   26,318
TOTAL STOCKHOLDERS' EQUITY   42,900   41,704
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 55,773 $ 53,095

INTEL CORPORATION
SUPPLEMENTAL FINANCIAL AND OTHER INFORMATION
(In millions)
     
Q1 2010 Q4 2009 Q1 2009
GEOGRAPHIC REVENUE:
Asia-Pacific $5,888 $5,964 $3,647
57% 57% 51%
Americas $1,906 $2,088 $1,510
18% 20% 21%
Europe $1,404 $1,524 $1,273
14% 14% 18%
Japan $1,101 $993 $715
11% 9% 10%
 
CASH INVESTMENTS:
Cash and short-term investments $10,915 $9,272 $7,792
Trading assets - marketable debt securities (1) 5,427 4,648 2,521
Total cash investments $16,342 $13,920 $10,313
 
TRADING ASSETS:
Trading assets - equity securities
offsetting deferred compensation (2) - - $286
Total trading assets - sum of 1+2 $5,427 $4,648 $2,807
 
SELECTED CASH FLOW INFORMATION:
Depreciation $1,080 $1,172 $1,208
Share-based compensation $248 $200 $213
Amortization of intangibles $61 $89 $62
Capital spending ($928) ($1,081) ($1,509)
Investments in non-marketable equity instruments ($45) ($85) ($41)
Proceeds from sales of shares to employees, tax benefit & other $230 $36 $247
Dividends paid ($870) ($774) ($779)
Net cash received/(used) for divestitures/acquisitions ($37) - -
 
EARNINGS PER COMMON SHARE INFORMATION:
Weighted average common shares outstanding - basic 5,529 5,522 5,573
Dilutive effect of employee equity incentive plans 101 77 10
Dilutive effect of convertible debt 51 51 51
Weighted average common shares outstanding - diluted 5,681 5,650 5,634
 
STOCK BUYBACK:
Cumulative shares repurchased (in billions) 3.4 3.4 3.3
Remaining dollars authorized for buyback (in billions) $5.7 $5.7 $7.4
 
OTHER INFORMATION:
Employees (in thousands) 79.9 79.8 82.5

INTEL CORPORATION
SUPPLEMENTAL OPERATING GROUP RESULTS
($ in millions)
         
Three Months Ended    
Q1 2010 Q4 2009 Q1 2009
Net Revenue
PC Client Group
Microprocessor revenue $ 5,913 $ 5,881 $ 4,249
Chipset, motherboard and other revenue 1,761 1,877 1,112
7,674 7,758 5,361
Data Center Group
Microprocessor revenue 1,552 1,703 1,012
Chipset, motherboard and other revenue 319 323 252
1,871 2,026 1,264
 
Other Intel Architecture groups 375 410 326
Intel Architecture group revenue 9,920 10,194 6,951
 
Other operating groups 369 367 149
Corporate 10 8 45
TOTAL NET REVENUE $ 10,299 $ 10,569 $ 7,145
 
 
Operating income (loss)
PC Client Group $ 3,143 $ 3,340 $ 701
Data Center Group 835 972 266
Other Intel Architecture groups (29) 12 (76)
Intel Architecture group operating income 3,949 4,324 891
 
Other operating groups (21) (22) (153)
Corporate (480) (1,805) (91)
TOTAL OPERATING INCOME $ 3,448 $ 2,497 $ 647

INTEL CORPORATION
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
       
In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains non-GAAP financial measures that exclude the charge incurred in the fourth quarter of 2009 as a result of the settlement agreement with Advanced Micro Devices, Inc. (AMD) in the amount of $1.25 billion. These non-GAAP measures also exclude the associated impacts of the AMD settlement on our tax provision.
 
The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Management believes the non-GAAP financial measures are appropriate for both its own assessment of, and to show the reader, how our performance compares to other periods. Set forth below are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
 
(In millions, except per-share amounts)
Three Months Ended
March 27, Dec. 26, March 28,
2010 2009   2009
 
GAAP OPERATING INCOME $ 3,448 $ 2,497 $ 647
Adjustment for AMD settlement:   -   1,250     -
OPERATING INCOME EXCLUDING AMD SETTLEMENT $ 3,448 $ 3,747 $ 647
 
GAAP NET INCOME $ 2,442 $ 2,282 $ 629
Adjustment for:
AMD settlement - 1,250 -
Income tax impacts   -   (438 )   -
NET INCOME EXCLUDING AMD SETTLEMENT $ 2,442 $ 3,094 $ 629
 
GAAP DILUTED EARNINGS PER COMMON SHARE $ 0.43 $ 0.40 $ 0.11
Adjustment for:
AMD settlement - 0.22 -
Income tax impacts   -   (0.07 )   -
DILUTED EARNINGS PER COMMON SHARE EXCLUDING AMD SETTLEMENT $ 0.43 $ 0.55 $ 0.11



Contact:

Intel Corporation
Mark Henninger, 408-653-9944 (Investor Relations)
Email Contact
Amy Kircos, 480-552-8803 (Media Relations)
Email Contact