SANTA CLARA, Calif.--(BUSINESS WIRE)--Intel Corporation today reported first-quarter revenue of $7.1 billion, operating income of $670 million, net income of $647 million and earnings per share (EPS) of 11 cents.
“We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns," said Paul Otellini, Intel president and CEO. “Intel has adapted well to the current economic environment and we’re benefiting from disciplined execution and agility. We’re delivering a product portfolio that meets the needs of the changing market, spanning affordable computing to high-performance, energy-efficient computing."
|Quarterly Results Summary|
|Q1 2009||vs. Q1 2008||vs. Q4 2008|
|Operating Income||$670 million||-68%||-56%|
|Net Income||$647 million||-55%||+176%|
Q4 2008 results included a net loss from equity investments of $1.1 billion, primarily due to a billion-dollar reduction in the carrying value of the company’s investments in Clearwire.
Key Financial Information
Intel’s Business Outlook does not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed after April 13. Current uncertainty in global economic conditions makes it particularly difficult to predict product demand and other related matters and makes it more likely that Intel’s actual results could differ materially from expectations. Consequently, the company is providing less quantitative guidance than in previous quarters.
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 29 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 press releases and filings with the SEC should be considered to be historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.
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. 27, 2008. The company’s revenue plan noted above under “Business Outlook” is a statement as of this date, is not a part of Outlook, and is not subject to updating by the company in the period prior to the Quiet Period.
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 (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 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.
|CONSOLIDATED SUMMARY INCOME STATEMENT DATA|
|(In millions, except per share amounts)|
|Three Months Ended|
|Mar. 28,||Mar. 29,|
|Cost of sales||3,884||4,466|
|Research and development||1,317||1,467|
|Marketing, general and administrative||1,200||1,349|
|Restructuring and asset impairment charges||74||329|
|Gains (losses) on equity investments, net||(113)||(59)|
|Interest and other, net||95||168|
|INCOME BEFORE TAXES||652||2,171|
|Provision for taxes||5||728|
|BASIC EARNINGS PER COMMON SHARE||$||0.12||$||0.25|
|DILUTED EARNINGS PER COMMON SHARE||$||0.11||$||0.25|
|WEIGHTED AVERAGE SHARES OUTSTANDING:|
|CONSOLIDATED SUMMARY BALANCE SHEET DATA|
|Mar. 28,||Dec. 27,|
|Cash and cash equivalents||$||3,536||$||3,350|
|Accounts receivable, net||2,086||1,712|
|Work in process||1,448||1,577|
|Deferred tax assets||1,337||1,390|
|Other current assets||1,070||1,182|
|TOTAL CURRENT ASSETS||18,137||19,871|
|Property, plant and equipment, net||17,815||17,574|
|Marketable equity securities||412||352|
|Other long-term investments||2,513||2,924|
|Other long-term assets||5,615||5,819|
|Accrued compensation and benefits||1,134||2,015|
|Deferred income on shipments to distributors||468||463|
|Other accrued liabilities||2,253||2,041|
|TOTAL CURRENT LIABILITIES||6,293||7,818|
|Long-term income taxes payable||662||736|
|Other long-term liabilities||1,217||1,187|
|Common stock and capital in excess of par value||13,845||13,402|
|Accumulated other comprehensive income (loss)||(390)||(393)|
|TOTAL STOCKHOLDERS' EQUITY||39,082||39,546|
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY||$||48,424||$||50,472|
As adjusted due to the implementation of FSP APB 14-1“Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)”
|SUPPLEMENTAL FINANCIAL AND OTHER INFORMATION|
|Q1 2009||Q4 2008||Q1 2008|
|Cash and short-term investments||$7,792||$8,681||$10,876|
|Trading assets - debt securities (1)||2,521||2,863||2,362|
|Total cash investments||$10,313||$11,544||$13,238|
Trading assets - equity securities offsetting deferred compensation (2)
|Total trading assets - sum of 1+2||$2,807||$3,162||$2,816|
|SELECTED CASH FLOW INFORMATION:|
|Amortization of intangibles||$62||$62||$63|
|Investments in non-marketable equity instruments||($41||)||($1,127||)||($213||)|
|Stock repurchase program||-||-||($2,500||)|
|Proceeds from sales of shares to employees, tax benefit & other||$247||$2||$475|
|EARNINGS PER SHARE INFORMATION:|
|Weighted average common shares outstanding - basic||5,573||5,562||5,787|
|Dilutive effect of employee equity incentive plans||10||10||41|
|Dilutive effect of convertible debt||51||51||51|
|Weighted average common shares outstanding - diluted||5,634||5,623||5,879|
|Cumulative shares repurchased (in billions)||3.3||3.3||3.1|
|Remaining dollars authorized for buyback (in billions)||$7.4||$7.4||$12.0|
|Employees (in thousands)||82.5||83.9||84.6|
|SUPPLEMENTAL OPERATING RESULTS AND OTHER INFORMATION|
|($ in millions)|
|Three Months Ended|
|OPERATING SEGMENT INFORMATION:||Q1 2009||Q4 2008||Q1 2008|
|Digital Enterprise Group|
|Chipset, motherboard and other revenue||751||835||1,205|
|Chipset and other revenue||726||917||943|