Intel Reports Full-Year Revenue of $53.3 Billion, Net Income of $11.0 Billion

Generates $18.9 Billion in Cash from Operations

Intel Corporation has reported full-year revenue of $53.3 billion, operating income of $14.6 billion, net income of $11.0 billion and EPS of $2.13. The company generated approximately $18.9 billion in cash from operations, paid dividends of $4.4 billion, and used $4.8 billion to repurchase 191 million shares of stock.

For the fourth quarter, Intel posted revenue of $13.5 billion, operating income of $3.2 billion, net income of $2.5 billion and EPS of 48 cents. The company generated approximately $6 billion in cash from operations, paid dividends of $1.1 billion and used $1.0 billion to repurchase 47 million shares of stock.

"The fourth quarter played out largely as expected as we continued to execute through a challenging environment," said Paul Otellini, Intel president and CEO. "We made tremendous progress across the business in 2012 as we entered the market for smartphones and tablets, worked with our partners to reinvent the PC, and drove continued innovation and growth in the data center. As we enter 2013, our strong product pipeline has us well positioned to bring a new wave of Intel innovations across the spectrum of computing."

Full-Year 2012 Key Financial Information and Business Unit Trends

  • PC Client Group had revenue of $34.3 billion, down 3 percent from 2011.
  • Data Center Group had revenue of $10.7 billion, up 6 percent from 2011.
  • Other Intel architecture group had revenue of $4.4 billion, down 13 percent from 2011.

Q4 Key Financial Information and Business Unit Trends

  • PC Client Group revenue of $8.5 billion, down 1.5 percent sequentially and down 6 percent year-over-year.
  • Data Center Group revenue of $2.8 billion, up 7 percent sequentially and up 4 percent year-over-year.
  • Other Intel® architecture group revenue of $1.0 billion, down 14 percent sequentially and down 7 percent year-over-year.
  • Gross margin of 58 percent, 1.0 percentage point above the midpoint of the company's expectation of 57 percent.
  • R&D plus MG&A spending $4.6 billion, in line with the company's expectation of approximately $4.5 billion.
  • Tax rate of 23 percent, below the company's expectation of approximately 27 percent.

Business Outlook

Intel's Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures or other investments that may be completed after Jan. 17.

Full-Year 2013

  • Revenue: low single-digit percentage increase.
  • Gross margin percentage: 60 percent, plus or minus a few percentage points.
  • R&D plus MG&A spending: $18.9 billion, plus or minus $200 million.
  • Amortization of acquisition-related intangibles: approximately $300 million.
  • Depreciation: $6.8 billion, plus or minus $100 million.
  • Impact of equity investments and interest and other: net gain of approximately $100 million.
  • Tax Rate: approximately 25 percent.
  • Full-year capital spending: $13.0 billion, plus or minus $500 million.

Q1 2013

  • Revenue: $12.7 billion, plus or minus $500 million.
  • Gross margin percentage: 58 percent, plus or minus a couple percentage points.
  • R&D plus MG&A spending: approximately $4.6 billion.
  • Amortization of acquisition-related intangibles: approximately $75 million.
  • Impact of equity investments and interest and other: net loss of approximately $50 million.
  • Depreciation: approximately $1.7 billion.

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 Mar. 15 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. 24. Intel’s Quiet Period will start from the close of business on Mar. 15 until publication of the company’s first-quarter earnings release, scheduled for April 16, 2013. 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.

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