Intel Corporation today reported full-year revenue of $54 billion,
operating income of $17.5 billion, net income of $12.9 billion and EPS
of $2.39 -- all records. The company generated approximately $21 billion
in cash from operations, paid dividends of $4.1 billion and used $14.1
billion to repurchase 642 million shares of stock.
For the fourth quarter, Intel posted revenue of $13.9 billion, operating
income of $4.6 billion, net income of $3.4 billion and EPS of 64 cents.
The company generated approximately $6.6 billion in cash from
operations, paid dividends of $1.1 billion and used $4.1 billion to
repurchase 174 million shares of stock.
“2011 was an exceptional year for Intel,” said Paul Otellini, Intel
president and CEO. “With outstanding execution the company performed
superbly, growing revenue by more than $10 billion and eclipsing all
annual revenue and earnings records. With a tremendous product and
technology pipeline for 2012, we’re excited about the global growth
opportunities presented by Ultrabook systems, the data center, security
and the introduction of Intel-powered smartphones and tablets.”
Intel’s Business Outlook does not include the potential impact of any
mergers, acquisitions, divestitures or other business combinations that
may be completed after Jan. 19.
Q1 2012 (GAAP, unless otherwise stated)
Full-Year 2012 (GAAP, unless otherwise stated)
For additional information regarding Intel’s results and Business
Outlook, please see the CFO commentary at: www.intc.com/results.cfm.
Status of Business Outlook
Intel’s Business Outlook is posted on intc.com and may be reiterated in
public or private meetings with investors and others. The Business
Outlook will be effective through the close of business March 16 unless
earlier updated; except that the Business Outlook for amortization of
acquisition-related intangibles, impact of equity investments and
interest and other, and tax rate, will be effective only through the
close of business on Jan. 26. Intel’s Quiet Period will start from the
close of business on March 16 until publication of the company’s
first-quarter earnings release, scheduled for April 17. During the Quiet
Period, all of the Business Outlook and other forward-looking statements
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.
Non-GAAP results exclude certain acquisition accounting impacts
and expenses related to acquisitions andthe related income
tax effects of these charges. Also, McAfee Inc. and Intel Mobile
Communications contributedrevenue of approximately $3.6
billion in 2011 and were not included in the results for 2010.
Non-GAAP results exclude certain acquisition accounting impacts
and expenses related toacquisitions and the related income
tax effects of these charges. Also, McAfee Inc. and IntelMobile
Communications contributed revenue of approximately $1 billion in
Q4 ’11 and were notincluded in the results for Q4 ’10.
Q4 and 2011 Key Financial Information (GAAP)
Q4 Business unit revenue:
Full Year Business unit revenue:
The above statements and any others in this document that refer to plans
and expectations for the first quarter, the year and the future are
forward-looking statements that involve a number of risks and
uncertainties. Words such as “anticipates,” “expects,” “intends,”
“plans,” “believes,” “seeks,” “estimates,” “may,” “will,” “should” and
their variations identify forward-looking statements. Statements that
refer to or are based on projections, uncertain events or assumptions
also identify forward-looking statements. 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 company’s
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-Q for the quarter ended Oct. 1, 2011.
Intel will hold a public webcast at 2:30 p.m. PST today on its Investor
Relations website at www.intc.com.
A webcast replay and MP3 download will also be made available on the
Intel plans to report its earnings for the first quarter of 2012 on
April 17. Immediately following the earnings report, the company plans
to publish a commentary by Stacy J. Smith, senior 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. PST at www.intc.com.
Intel (NASDAQ: INTC) is a world leader in computing innovation. The
company designs and builds the essential technologies that serve as the
foundation for the world’s computing devices. Additional information
about Intel is available at newsroom.intel.com
Intel, the Intel logo, Intel Atom and Ultrabook are trademarks of Intel
Corporation in the United States and other countries.*Other names
and brands may be claimed as the property of others.
SUPPLEMENTAL FINANCIAL AND OTHER INFORMATION
• PC Client Group: Delivering platforms for the notebook
and desktop (including high-end enthusiast PCs)market
segments; and wireless connectivity products.
• Data Center Group: Delivering platforms designed for the
server, workstation, and storage computingmarket segments;
and wired network connectivity products.
• Intel Mobile Communications: Delivering mobile phone
components such as baseband processors, radiofrequency
transceivers, and power management chips.
• Intelligent Systems Group (formerly Embedded and
Communications Group): Delivering platforms forembedded
• Ultra-Mobility Group: Delivering low-power Intel
Architecture-based products in the next-generationhandheld
• McAfee: A wholly owned subsidiary delivering software
products for endpoint security, system security,consumer
security, network security, and risk and compliance.
•Wind River Software Group: A wholly owned subsidiary
delivering device software optimization productsto the
embedded and handheld market segments, serving a variety of
• Software and Services Group: Delivering software products
and services that promote Intel Architectureas the platform
of choice for software development.
• Non-Volatile Memory Solutions Group: Delivering advanced
NAND flash memory products for use ina variety of devices.
• A portion of profit-dependent compensation and other expenses
not allocated to the operating groups.
• Divested businesses and results of seed businesses that support
• Acquisition-related costs, including amortization and any
impairment of acquisition-related intangibles and goodwill.
EXPLANATION OF NON-GAAP MEASURES
In addition to disclosing financial results in accordance with
United States (U.S.) generally accepted accounting principles
(GAAP), this document contains non-GAAP financial measures that we
believe are helpful in understanding and comparing our past
financial performance and our future results. The non-GAAP
financial measures disclosed by the company exclude certain
business combination accounting adjustments and certain expenses
related to acquisitions. These non-GAAP financial measures 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
period to period comparisons in our budget, planning and
evaluation processes, and to show the reader how our performance
compares to other periods. Our non-GAAP financial measures reflect
adjustments based on the following items, as well as the related
income tax effects:
Deferred revenue write-down and associated
costs: Business combination accounting
principles require us to write down to fair values the software
license updates; software product and hardware systems support
contracts; product support contracts and hardware systems support
contracts assumed in our acquisitions. The revenue for these
support contracts is deferred and typically recognized over the
contract period, so our GAAP revenues for the contract period
after the acquisition does not reflect the full amount of revenues
that would have been reported if the acquired deferred revenue was
not written down to fair value. The non-GAAP adjustments eliminate
the effect of the deferred revenue write-down and include the
costs associated with the revenue adjustment. We believe these
adjustments to the revenue from these support contracts and to the
associated costs are useful to investors as an additional means to
reflect revenue trends of our business.
Amortization of acquisition-related
intangible assets: Amortization of
acquisition-related intangible assets consists of amortization of
developed technology, trade names, and customer relationships
acquired in connection with business combinations. We record
charges relating to the amortization of these intangibles in our
GAAP financial statements. Amortization charges for our
acquisition-related intangible assets are inconsistent in size and
are significantly impacted by the timing and valuation of our
acquisitions. Consequently, our non-GAAP adjustments exclude these
charges to facilitate an evaluation of our current operating
performance and comparisons to our past operating performance.
Inventory valuation adjustment:
Business combination accounting principles require us to measure
acquired inventory at fair value. The fair value of inventory
reflects the acquired company’s cost of manufacturing plus a
portion of the expected profit margin. The non-GAAP adjustment to
our cost of sales excludes the expected profit margin component
that is recorded under business combination accounting principles.
We believe the adjustment is useful to investors as an additional
means to reflect cost of sales and gross margin trends of our
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