January 19, 2012 at 16:05 PM EST
Intel Reports Record Year

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.”

Business Outlook

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)

  • Revenue: $12.8 billion, plus or minus $500 million.
  • Gross margin percentage: 63 percent and 64 percent Non-GAAP (excluding amortization of acquisition-related intangibles), both plus or minus a couple percentage points.
  • R&D plus MG&A spending: approximately $4.4 billion.
  • Amortization of acquisition-related intangibles: approximately $75 million.
  • Impact of equity investments and interest and other: approximately zero.
  • Depreciation: approximately $1.5 billion.

Full-Year 2012 (GAAP, unless otherwise stated)

  • Gross margin percentage: 64 percent and 65 percent Non-GAAP (excluding amortization of acquisition-related intangibles), both plus or minus a few percentage points.
  • Spending (R&D plus MG&A): $18.3 billion, plus or minus $200 million.
  • R&D spending: approximately $10.1 billion.
  • Amortization of acquisition-related intangibles: approximately $300 million.
  • Depreciation: $6.5 billion, plus or minus $100 million.
  • Tax Rate: approximately 29 percent.
  • Full-year capital spending: $12.5 billion, plus or minus $400 million.

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 Financial Comparison
Annual
2011 2010 vs. 2010
Revenue $54.2 billion $43.6 billion up 24%
Gross Margin 63.6% 65.5% down 1.9 pts.
Operating Income $18.4 billion $15.7 billion up 18%
Net Income $13.7 billion $11.5 billion up 19%
Earnings Per Share $2.53 $2.02 up 25%

Non-GAAP results exclude certain acquisition accounting impacts and expenses related to acquisitions and
the related income tax effects of these charges. Also, McAfee Inc. and Intel Mobile Communications contributed
revenue of approximately $3.6 billion in 2011 and were not included in the results for 2010.

GAAP Financial Comparison
Annual
2011 2010 vs. 2010
Revenue $54.0 billion $43.6 billion up 24%
Gross Margin 62.5% 65.3% down 2.8 pts.
Operating Income $17.5 billion $15.6 billion up 12%
Net Income $12.9 billion $11.5 billion up 13%
Earnings Per Share $2.39 $2.01 up 19%

Non-GAAP Financial Comparison
Quarterly
Q4 2011 Q4 2010 vs. Q4 2010
Revenue $13.9 billion $11.5 billion up 22%
Gross Margin 65.5% 64.8% up 0.7 pts.
Operating Income $4.8 billion $4.0 billion up 20%
Net Income $3.5 billion $3.2 billion up 11%
Earnings Per Share 68 cents 56 cents up 21%

Non-GAAP results exclude certain acquisition accounting impacts and expenses related to
acquisitions and the related income tax effects of these charges. Also, McAfee Inc. and Intel
Mobile Communications contributed revenue of approximately $1 billion in Q4 ’11 and were not
included in the results for Q4 ’10.

GAAP Financial Comparison
Quarterly
Q4 2011 Q4 2010 vs. Q4 2010
Revenue $13.9 billion $11.5 billion up 21%
Gross Margin 64.5% 64.6% down 0.1 pts.
Operating Income $4.6 billion $4.0 billion up 14%
Net Income $3.4 billion $3.2 billion up 6%
Earnings Per Share 64 cents 56 cents up 14%

Q4 and 2011 Key Financial Information (GAAP)

Q4 Business unit revenue:

  • PC Client Group revenue of $9 billion, up 17 percent year-over-year.
  • Data Center Group revenue of $2.7 billion, up 8 percent year-over-year.
  • Other Intel® architecture group revenue of $1.1 billion, up 35 percent year-over-year.
  • Intel® Atom™ microprocessor and chipset revenue of $167 million, down 57 percent year-over-year.
  • McAfee Inc. and Intel Mobile Communications contributed revenue of approximately $1 billion.

Full Year Business unit revenue:

  • PC Client Group had revenue of $35.4 billion, up 17% from 2010.
  • Data Center Group had revenue of $10.1 billion, up 17% from 2010.
  • Other Intel architecture group had revenue of $5.0 billion, up 64% from 2010.
  • Intel Atom microprocessor and chipset revenue of $1.2 billion, down 25% from 2010.
  • McAfee Inc. and Intel Mobile Communications contributed revenue of $3.6 billion.

Risk Factors

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 expectations.

  • Demand could be different from Intel's expectations due to factors including changes in business and economic conditions, including supply constraints and other disruptions affecting customers; customer acceptance of Intel’s and competitors’ products; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers. Uncertainty in global economic and financial conditions poses a risk that consumers and businesses may defer purchases in response to negative financial events, which could negatively affect product demand and other related matters.
  • Intel operates in intensely competitive industries that are characterized by a high percentage of costs that are fixed or difficult to reduce in the short term and product demand that is highly variable and difficult to forecast. Revenue and the gross margin percentage are affected by the timing of Intel product introductions and the demand for and market acceptance of Intel's products; actions taken by Intel's competitors, including product offerings and introductions, marketing programs and pricing pressures and Intel’s response to such actions; and Intel’s ability to respond quickly to technological developments and to incorporate new features into its products.
  • Intel is in the process of transitioning to its next generation of products on 22nm process technology, and there could be execution and timing issues associated with these changes, including products defects and errata and lower than anticipated manufacturing yields.
  • The gross margin percentage could vary significantly from expectations based on capacity utilization; variations in inventory valuation, including variations related to the timing of qualifying products for sale; changes in revenue levels; product mix and pricing; the timing and execution of the manufacturing ramp and associated costs; start-up costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; product manufacturing quality/yields; and impairments of long-lived assets, including manufacturing, assembly/test and intangible assets.
  • The tax rate expectation is based on current tax law and current expected income. The tax rate may be affected by the jurisdictions in which profits are determined to be earned and taxed; changes in the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits with various tax authorities, including payment of interest and penalties; and the ability to realize deferred tax assets.
  • Gains or losses from equity securities and interest and other could vary from expectations depending on gains or losses on the sale, exchange, change in the fair value or impairments of debt and equity investments; interest rates; cash balances; and changes in fair value of derivative instruments.
  • The majority of Intel’s non-marketable equity investment portfolio balance is concentrated in companies in the flash memory market segment, and declines in this market segment or changes in management’s plans with respect to Intel’s investments in this market segment could result in significant impairment charges, impacting restructuring charges as well as gains/losses on equity investments and interest and other.
  • Intel's results could be affected by adverse economic, social, political and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates.
  • Expenses, particularly certain marketing and compensation expenses, as well as restructuring and asset impairment charges, vary depending on the level of demand for Intel's products and the level of revenue and profits.
  • Intel’s results could be affected by the timing of closing of acquisitions and divestitures.
  • Intel's results could be affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust and other issues, such as the litigation and regulatory matters described in Intel's SEC reports. An unfavorable ruling could include monetary damages or an injunction prohibiting us from manufacturing or selling one or more products, precluding particular business practices, impacting Intel’s ability to design its products, or requiring other remedies such as compulsory licensing of intellectual property.

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.

Earnings Webcast

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 site.

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.

About Intel

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 and blogs.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.

INTEL CORPORATION
CONSOLIDATED SUMMARY STATEMENT OF INCOME DATA
(In millions, except per share amounts)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 25, Dec. 31, Dec. 25,
2011 2010 2011 2010
NET REVENUE $ 13,887 $ 11,457 $ 53,999 $ 43,623
Cost of sales 4,935 4,051 20,242 15,132
GROSS MARGIN 8,952 7,406 33,757 28,491
Research and development 2,308 1,671 8,350 6,576
Marketing, general and administrative 1,973 1,705 7,670 6,309
R&D AND MG&A 4,281 3,376 16,020 12,885
Amortization of acquisition-related intangibles 72 7 260 18
OPERATING EXPENSES 4,353 3,383 16,280 12,903
OPERATING INCOME 4,599 4,023 17,477 15,588
Gains (losses) on equity investments, net 17 109 112 348
Interest and other, net (29) 31 192 109
INCOME BEFORE TAXES 4,587 4,163 17,781 16,045
Provision for taxes 1,227 983 4,839 4,581
NET INCOME $ 3,360 $ 3,180 $ 12,942 $ 11,464
BASIC EARNINGS PER COMMON SHARE $ 0.66 $ 0.57 $ 2.46 $ 2.06
DILUTED EARNINGS PER COMMON SHARE $ 0.64 $ 0.56 $ 2.39 $ 2.01
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
BASIC 5,069 5,554 5,256 5,555
DILUTED 5,242 5,698 5,411 5,696

INTEL CORPORATION
CONSOLIDATED SUMMARY BALANCE SHEET DATA
(In millions)
Dec. 31, Oct. 1, Dec. 25,
2011 2011 2010
CURRENT ASSETS
Cash and cash equivalents $ 5,065 $ 7,057 $ 5,498
Short-term investments 5,181 3,876 11,294
Trading assets 4,591 4,265 5,093
Accounts receivable, net 3,650 3,821 2,867
Inventories:
Raw materials 644 614 471
Work in process 1,680 1,494 1,887
Finished goods 1,772 1,851 1,399
4,096 3,959 3,757
Deferred tax assets 1,700 2,011 1,488
Other current assets 1,589 1,709 1,614
TOTAL CURRENT ASSETS 25,872 26,698 31,611
Property, plant and equipment, net 23,627 22,157 17,899
Marketable equity securities 562 516 1,008
Other long-term investments 889 858 3,026
Goodwill 9,254 9,138 4,531
Identified intangible assets, net 6,267 6,445 860
Other long-term assets 4,648 4,739 4,251
TOTAL ASSETS $ 71,119 $ 70,551 $ 63,186
CURRENT LIABILITIES
Short-term debt $ 247 $ 66 $ 38
Accounts payable 2,956 2,999 2,290
Accrued compensation and benefits 2,948 2,270 2,888
Accrued advertising 1,134 1,215 1,007
Deferred income 1,929 1,917 747
Other accrued liabilities 2,814 3,442 2,357
TOTAL CURRENT LIABILITIES 12,028 11,909 9,327
Long-term debt 7,084 7,076 2,077
Long-term deferred tax liabilities 2,617 2,762 926
Other long-term liabilities 3,479 2,687 1,426
Stockholders' equity:
Preferred stock
Common stock and capital in excess of par value 17,036 16,247 16,178
Accumulated other comprehensive income (loss) (781) (32) 333
Retained earnings 29,656 29,902 32,919
TOTAL STOCKHOLDERS' EQUITY 45,911 46,117 49,430
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 71,119 $ 70,551 $ 63,186

INTEL CORPORATION

SUPPLEMENTAL FINANCIAL AND OTHER INFORMATION

(In millions)

Q4 2011

Q3 2011

Q4 2010

GEOGRAPHIC REVENUE:
Asia-Pacific $8,019 $8,050 $6,514
58% 57% 57%
Americas $2,657 $3,017 $2,296
19% 21% 20%
Europe $1,932 $1,814 $1,582
14% 13% 14%
Japan $1,279 $1,352 $1,065
9% 9% 9%
CASH INVESTMENTS:
Cash and short-term investments $10,246 $10,933 $16,792
Trading assets - marketable debt securities (1) 4,591 4,259 4,705
Total cash investments $14,837 $15,192 $21,497
TRADING ASSETS:
Trading assets - equity securities (2) $6 $388
Total trading assets - sum of 1+2 $4,591 $4,265 $5,093
CURRENT DEFERRED INCOME:
Deferred income on shipments of components to distributors $751 $833 $622
Deferred income from software and services group 1,178 1,084 125
Total current deferred income $1,929 $1,917 $747
SELECTED CASH FLOW INFORMATION:
Depreciation $1,333 $1,273 $1,146
Share-based compensation $241 $250 $213
Amortization of intangibles $256 $256 $60
Capital spending ($2,844) ($2,713) ($1,869)
Investments in non-marketable equity instruments ($124) ($274) ($151)
Stock repurchase program ($4,133) ($4,000) ($1,500)
Proceeds from sales of shares to employees & excess tax benefit $1,129 $340 $54
Dividends paid ($1,070) ($1,102) ($879)
Net cash received/(used) for divestitures/acquisitions ($244) ($186) ($148)
EARNINGS PER COMMON SHARE INFORMATION:
Weighted average common shares outstanding - basic 5,069 5,194 5,554
Dilutive effect of employee equity incentive plans 115 93 92
Dilutive effect of convertible debt 58 53 52
Weighted average common shares outstanding - diluted 5,242 5,340 5,698
STOCK BUYBACK:
Shares repurchased 174 186 70
Cumulative shares repurchased (in billions) 4.1 3.9 3.4
Remaining dollars authorized for buyback (in billions) $10.1 $14.2 $4.2
OTHER INFORMATION:
Employees (in thousands) 100.1 99.9 82.5

INTEL CORPORATION

SUPPLEMENTAL OPERATING GROUP RESULTS
($ in millions)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 25, Dec. 31, Dec. 25,
2011 2010 2011 2010
Net Revenue
PC Client Group $ 9,047 $ 7,713 $ 35,406 $ 30,327
Data Center Group 2,717 2,522 10,129 8,693
Other Intel Architecture Group 1,099 814 5,005 3,055
Intel Architecture Group 12,863 11,049 50,540 42,075
Software and Services Group 578 75 1,870 264
All other 446 333 1,589 1,284
TOTAL NET REVENUE $ 13,887 $ 11,457 $ 53,999 $ 43,623
Operating income (loss)
PC Client Group $ 3,952 $ 3,206 $ 14,793 $ 12,971
Data Center Group 1,453 1,426 5,100 4,388
Other Intel Architecture Group (368) 76 (577) 270
Intel Architecture Group 5,037 4,708 19,316 17,629
Software and Services Group 16 (47) (32) (175)
All other (454) (638) (1,807) (1,866)
TOTAL OPERATING INCOME $ 4,599 $ 4,023 $ 17,477 $ 15,588
Our operating groups shown above are comprised of the following:

• 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 computing
market segments; and wired network connectivity products.

Other Intel Architecture Group consist of the following:

• Intel Mobile Communications: Delivering mobile phone components such as baseband processors, radio
frequency transceivers, and power management chips.

• Intelligent Systems Group (formerly Embedded and Communications Group): Delivering platforms for
embedded applications.

• Netbook and Tablet Group: Delivering platforms for the netbook and tablet market segments.

• Ultra-Mobility Group: Delivering low-power Intel Architecture-based products in the next-generation
handheld market segment.

• Software and Services Group consists of the following:

• 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 products
to the embedded and handheld market segments, serving a variety of hardware architectures.

• Software and Services Group: Delivering software products and services that promote Intel Architecture
as the platform of choice for software development.

All Other consists of the following:

• Non-Volatile Memory Solutions Group: Delivering advanced NAND flash memory products for use in
a variety of devices.

• Corporate: Revenue, expenses and charges such as:

• A portion of profit-dependent compensation and other expenses not allocated to the operating groups.

• Divested businesses and results of seed businesses that support our initiatives.

• Acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and goodwill.

INTEL CORPORATION

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 business.

INTEL CORPORATION
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
Set forth below are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. The non-GAAP financial measures disclosed by the company have limitations and should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated. Please refer to "Explanation of Non-GAAP Measures" in this document for a detailed explanation of the adjustments made to comparable GAAP measures, the ways management uses these non-GAAP measures, and the reasons why management believes these non-GAAP measures provide useful information for investors.
(In millions, except per share amounts)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 25, Dec. 31, Dec. 25,
2011 2010 2011 2010
GAAP NET REVENUE $ 13,887 $ 11,457 $ 53,999 $ 43,623
Adjustment for deferred revenue write-down 35 - 204 -
NON-GAAP NET REVENUE $ 13,922 $ 11,457 $ 54,203 $ 43,623
GAAP GROSS MARGIN $ 8,952 $ 7,406 $ 33,757 $ 28,491
Adjustment for:
Deferred revenue write-down and associated costs 32 - 190 -
Amortization of acquisition-related intangibles 137 17 482 65
Inventory valuation - - 33 -
NON-GAAP GROSS MARGIN $ 9,121 $ 7,423 $ 34,462 $ 28,556
GAAP GROSS MARGIN PERCENTAGE 64.5% 64.6% 62.5% 65.3%
Adjustment for:
Deferred revenue write-down and associated costs - - 0.1% -
Amortization of acquisition-related intangibles 1.0% 0.2% 0.9% 0.2%
Inventory valuation - - 0.1% -
NON-GAAP GROSS MARGIN PERCENTAGE 65.5% 64.8% 63.6% 65.5%
GAAP OPERATING INCOME $ 4,599 $ 4,023 $ 17,477 $ 15,588
Adjustment for:
Deferred revenue write-down and associated costs 32 - 190 -
Amortization of acquisition-related intangibles 209 24 742 83
Inventory valuation - - 33 -
NON-GAAP OPERATING INCOME $ 4,840 $ 4,047 $ 18,442 $ 15,671
GAAP NET INCOME $ 3,360 $ 3,180 $ 12,942 $ 11,464
Adjustment for:
Deferred revenue write-down and associated costs 32 - 190 -
Amortization of acquisition-related intangibles 209 24 742 83
Inventory valuation - - 33 -
Income tax effect (56) (8) (215) (29)
NON-GAAP NET INCOME $ 3,545 $ 3,196 $ 13,692 $ 11,518
GAAP DILUTED EARNINGS PER COMMON SHARE $ 0.64 $ 0.56 $ 2.39 $ 2.01
Adjustment for:
Deferred revenue write-down and associated costs 0.01 - 0.03 -
Amortization of acquisition-related intangibles 0.04 - 0.14 0.01
Inventory valuation - - 0.01 -
Income tax effect (0.01) - (0.04) -
NON-GAAP DILUTED EARNINGS PER COMMON SHARE $ 0.68 $ 0.56 $ 2.53 $ 2.02

INTEL CORPORATION
SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
Set forth below are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the financial outlook prepared in accordance with GAAP and the reconciliations from this outlook should be carefully evaluated. Please refer to "Explanation of Non-GAAP Measures" in this document for a detailed explanation of the adjustment made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.
Q1 2012 Outlook 2012 Outlook
GAAP GROSS MARGIN PERCENTAGE 63% +/- a couple percentage points 64% +/- a few percentage points
Adjustment for amortization of acquisition-related intangibles 1% 1%
NON-GAAP GROSS MARGIN PERCENTAGE 64% +/- a couple percentage points 65% +/- a few percentage points

Contacts:

Intel Corporation
Reuben Gallegos, 408-765-5374 (Investor Relations)
reuben.m.gallegos@intel.com
Jon Carvill, 503-696-5069 (Media Relations)
jon.carvill@intel.com
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07/22/2014  SEMI today announced the launch of the association's first-ever event in Latin America.

SEMI: June 2014 equipment bookings at the highest level since May 2012

07/22/2014  North America-based manufacturers of semiconductor equipment posted $1.47 billion in orders worldwide in June 2014 (three-month average basis) and a book-to-bill ratio of 1.09, according to the June EMDS Book-to-Bill Report published today by SEMI.

Process Watch: The 10 fundamental truths of process control for the semiconductor IC industry

07/22/2014  This is the first in a series of 10 installments which will discuss fundamental truths about process control - inspection and metrology - for the semiconductor industry.

Dongbu HiTek unveils low-voltage BCDMOS process for efficient power management

07/22/2014  Dongbu HiTek today announced the immediate availability of a Low Voltage BCDMOS Process (BD130LV) at the 0.13-micron node that is ideally suited for implementing the main Power Management IC (PMIC) for smart phones and tablet computers.

Allegro MicroSystems announces new silicon carbide Schottky barrier diode FMCA series

07/22/2014  Allegro MicroSystems, LLC announces the release of the next generation series of silicon carbide Schottky barrier diodes.

Solid State Equipment wins 2014 3D InCites Award for WaferEtch TSV Revealer

07/22/2014  Solid State Equipment LLC (SSEC), a provider of single-wafer wet processing systems for advanced packaging (including 2.5D and 3D ICs), MEMS, and compound semiconductor markets, was awarded a 2014 3D InCites Award in the category of 2.5D/3D Manufacturing Equipment.

CEA-Leti: Monolithic 3D is the solution for further scaling

07/21/2014  Hughes Metras, Leti’s VP of Strategic Partnerships North America, introduced the lead talk at their SemiconWest 2014 Leti Day about monolithic 3D technology as the "solution for scaling."

Edwards honored at SEMICON West 2014

07/18/2014  Edwards Limited is pleased to announce that Mike Czerniak, Product Marketing Manager Exhaust Gas Management, was honored with SEMI’s Merit Award during SEMICON West last week.

MORE ANALYSIS & FEATURES

VIDEOS

RECOMMENDED TECHNOLOGY PAPERS

Parylene 101: Learn about the best protection for MEMS

This paper explains the basic history, processes, and applications of the ultimate conformal coating, parylene. Parylene has historically been used to protect printed circuit boards, LEDS, and medical devices from rugged environments and the human body, but now the pin-hole free coating is being used increasingly by the leaders in the MEMS market. With no known chemical that can harm the film, it is a perfect application for fuel tanks, water meters, or any product that must function in a hazardous environment. May 22, 2014
Sponsored by Diamond-MT

Conformal Coatings for Reliable Electronic Assemblies

Modern electronics have become part of our daily lives and the sophisticated electronic circuitry at the heart of these devices and systems must be reliable. Conformal coatings act as a barrier between the electronics and the environment, protecting the areas they cover while strengthening delicate components and traces. Find out more about how conformal coatings enhance the reliability and longevity of electronic printed circuit boards.April 24, 2014
Sponsored by Master Bond, Inc.,

The Next Step in Diagnosis Resolution Improvement

Learn more about RCD as the next step in diagnosis solution enhancement. Where layout-aware diagnosis points to a segment, earn more about RCD as the next step in diagnosis solution enhancement. Where layout-aware diagnosis points to a segment, RCD can isolate a particular root cause in that segment. RCD, a statistical enhancement technology in Tessent Diagnosis and YieldInsight products, is the next step in diagnosis resolution enhancement. It works by analyzing multiple layout diagnosis reports together to identify the underlying defect distribution that is more likely to explain this set of diagnosis results. RCD does not require any additional data beyond what is required for layout-aware diagnosis. This means that RCD fits well into existing diagnosis flows. April 24, 2014
Sponsored by Mentor Graphics

More Technology Papers

WEBCASTS

Wet Processing

July 2014 (date and time TBD) Wet processing including wafer cleaning, is one of the most common yet most critical processing step, since it can have a huge impact on the success of the subsequent process step. Not only does it involve the removal of organic and metal contaminants, but it must leave the surface in a desired state (hydrophilic or hydrophobic, for example), with minimal roughness and minimal surface loss – all on a growing list of different types of materials. In this webcast, experts will identify industry challenges and possible solutions.

Sponsored By:
450 Update

July 2014 (date and time TBD) The switch to 450mm will likely be the largest, most expensive retooling the semiconductor industry has ever experienced. Will you be ready? 450mm fabs, which will give an unbeatable competitive advantage to the largest semiconductor manufacturers, are likely to cost $10 billion and come on-line in 2017, with production ramp in 2018. Unprecedented technical challenges still need to be overcome, but work is well underway. This webcast will provide an update on the current status of activities, key milestones and schedules, and the status of 450mm research on processes and devices.

Sponsored By:

Metrology

August 2014 (date and time TBD) Continued scaling and more complex device structures, including FinFETs and 3D stacking, are creating new challenges in metrology and inspection. Smaller defects must be detected and analyzed on an increasingly diverse set of materials. Chip makers are looking for better wafer edge inspection techniques, higher resolution metrology tools, 450mm-capability and new compositional analysis solutions.

Sponsored By:
More Webcasts

EVENTS

SPIE Photomask Technology 2014
Monterey Conference Center and Monterey Marriott,
http://spie.org/photomask.xml?WT.mc_id=RCal-PMW
September 16, 2014 - September 18, 2014
Photomask Technology Exhibition 2014
Monterey Conference Center and Monterey Marriott,
http://spie.org/photomask.xml?WT.mc_id=RCal-PMW
September 16, 2014 - September 17, 2014

FINANCIALS

NEW COMMENTS


Gopal Rao at The ConFab: Scaling isn’t enough anymore
Paradigm shift in semi equipment - Confirmed
Applied Materials and Tokyo Electron unveil new company name

NEW PRODUCTS

Entegris announces GateKeeper GPS platform
07/15/2014Entegris, Inc., announced last week the launch of GateKeeper GPS, its next-generation of automated regeneration gas purification system (GPS) technology....
Bruker introduces Inspire nanoscale chemical mapping system
07/15/2014Bruker today announced the release of Inspire, the first integrated scanning probe microscopy (SPM) infrared system for 10-nanometer spatial...
MEMS wafer inspection system from Sonoscan
06/25/2014Sonoscan has announced its AW322 200 fully automated system for ultrasonic inspection of MEMS wafers....