Intel Inches Out Slight Increase in Net Income in Q3, According to In-Stat/MDR Report

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Nov. 10, 2004--In its first in a series of quarterly Intel reports, In-Stat/MDR (http://www.instat.com) finds that, while the semiconductor industry still struggles to recover from the industry's worst downturn and manage a significant increase in capacity, Intel has stabilized net income and inched out a slight increase in net income in Q3 at $1.9 billion. For the year, the high-tech market research firm projects that Intel is on track to produce a net income and revenues just shy of the record levels achieved in 2000. Inventories, a major concern to Intel and the market, remained relatively flat in Q3 but remain at record high levels.

However, although not indicating the change as a schedule slip, Intel did quietly push-out manufacturing on 65nm, the next-generation process technology until 2006. In-Stat/MDR's Jim McGregor believes that challenging industry conditions and scheduling could push this out until mid-2006 or later. In Q3, Intel did not indicate any other changes to its manufacturing plan.

“Intel Q3 Review: Business and Technology Review”

In-Stat/MDR's quarterly report also finds that:

-- Intel announced 10 new microprocessors in the Q3 timeframe, including three new server processors, one new desktop processor, and six new mobile processors.

-- Intel's product strategy remained relatively constant from Q2 with an emphasis on dual-core processors for the future.

-- The future of server processors for Intel remains uncertain as dual-core EM64T Xeon solutions as well as the power and thermal limitations of the Itanium will squeeze the market for Itanium processors limiting them to only ultra-compute-intensive applications.

-- The communications strategy and platforms will become the major focus for Intel in the long-term. The communications group has not produced an annual profit to date, but will generate close to $5 billion revenues in 2004.

-- On the competitive front, AMD continues to provide significant competition in desktop and server processors.

The report, "Intel Q3 Review: Business and Technology Review" (#IN0402441IN), is a quarterly review of Intel's business performance. The report provides status and analysis of Intel's financial performance, microprocessor shipments, competitive positioning, and a short- to mid-term outlook. In addition, the report provides updates on new products and changes in product roadmaps and strategic focus. This is the first in a series of reports that will be provided on a quarterly basis. To purchase this report, or for more information, please visit http://www.instat.com/catalog/Scatalogue.asp?id=86 or contact Courtney McEuen at 480-483-4454; cmceuen@reedbusiness.com. The report price is $2,495.

About In-Stat/MDR

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With more than 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.