Ralph
16.01.2001, 22:23
Intel Reports Record Annual Revenue And EPS
Fourth Quarter Earnings Excluding Acquisition-Related Costs* $0.38 per share Fourth Quarter Earnings Per Share $0.32
SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 16, 2001--
Intel Corporation today announced revenue for 2000 of $33.7 billion, up 15 percent from 1999, resulting in the company's fourteenth consecutive year of revenue growth. Fourth quarter revenue was $8.7 billion, up 6 percent from the fourth quarter of 1999, and approximately flat with the third quarter of 2000.
Acquisition-related costs consist of one-time write-offs of purchased in-process research and development and the ongoing amortization of goodwill and other acquisition-related intangibles and costs. Intangibles include, for example, the value of the acquired companies' developed technology, trademarks and workforce-in-place. Earnings excluding acquisition-related costs differ from earnings presented according to generally accepted accounting principles because they exclude these costs.
For 2000, net income excluding acquisition-related costs was $12.1 billion, up 49 percent from $8.1 billion in 1999. For 2000, earnings excluding acquisition-related costs were $1.73 per share, an increase of 48 percent from $1.17 in 1999.
Including acquisition-related costs in accordance with generally accepted accounting principles, net income in 2000 was $10.5 billion, up 44 percent from $7.3 billion in 1999. For 2000, earnings per share were $1.51, up 44 percent from $1.05 in 1999.
Acquisition-related costs in 2000 consisted of $109 million in one-time charges for purchased in-process research and development and $1.6 billion of amortization of goodwill and other acquisition-related intangibles and costs.
For the fourth quarter, net income excluding acquisition-related costs was $2.6 billion, up 10 percent from the fourth quarter of 1999 and down 9 percent sequentially. Fourth quarter earnings excluding acquisition-related costs were $0.38 per share, an increase of 12 percent from $0.34 in the fourth quarter of 1999, and down 7 percent sequentially.
Including acquisition-related costs in accordance with generally accepted accounting principles, fourth quarter net income was $2.2 billion, up 4 percent from fourth quarter 1999 and down 13 percent sequentially. Earnings per share were $0.32, up 7 percent from $0.30 in the fourth quarter of 1999 and down 11 percent sequentially.
Acquisition-related costs in the fourth quarter consisted of $18 million in one-time charges for purchased in-process research and development and $459 million of amortization of goodwill and other acquisition-related intangibles and costs.
``This was a year of record annual revenue and earnings; yet, slowing economic conditions impacted fourth quarter growth and are causing near-term uncertainty,\224 said Craig R. Barrett, president and chief executive officer. \223Looking forward, we are confident in our business strategy and competitive position,'' he continued. ``Our financial strength enables us aggressively to increase our current investments in capital and R&D spending to ensure future leadership and readiness with 0.13-micron process manufacturing, 300 mm technology and a strong product portfolio.''
During the quarter, the company announced the acquisition of the consulting group of Network Solutions Private Ltd. and closed the previously announced acquisition of Ziatech Corporation. In 2000, the company acquired 16 companies and businesses for over $2.7 billion, primarily focused on expanding the company's networking, communications and wireless businesses.
During the quarter, the company paid its quarterly cash dividend of $0.02 per share. The dividend was paid on Dec. 1, 2000, to stockholders of record on Nov. 7, 2000. Intel has paid a regular quarterly cash dividend for over eight years.
During the quarter, the company repurchased a total of 22.8 million shares of common stock, at a cost of $1.0 billion, under an ongoing program. For the year, the company repurchased a total of 73.5 million shares at a total cost of $4.0 billion. Since the program began in 1990, the company has repurchased 1.4 billion shares at a total cost of $22.2 billion.
BUSINESS OUTLOOK
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions or other business combinations that may be completed after Dec. 30, 2000.
Current negative trends in global economic conditions make it particularly difficult at present to predict product demand and other related matters.
The company's best estimate given the high level of economic uncertainty is that revenue for the first quarter of 2001 will be down 15 percent, plus or minus several points, from fourth quarter revenue of $8.7 billion, due to seasonal factors and the impact of slowing worldwide economies.
Gross margin percentage in the first quarter of 2001 is expected to be 58 percent, plus or minus a couple of points, down from 63 percent in the fourth quarter primarily due to lower revenue. The company's expectation for gross margin percentage for 2001 is uncertain at this time, however, it is the company's goal to at least equal first quarter gross margin percentage for the full year. In the short term, Intel's gross margin percentage varies primarily with revenue levels, product mix, changes in unit costs and timing of factory ramps and associated costs.
Expenses (R&D, excluding in-process R&D, plus MG&A) in the first quarter of 2001 are expected to be approximately flat with fourth quarter expenses of $2.4 billion. The company continues to invest heavily in R&D for its future product roadmap and expansion into new networking and communications businesses. Expenses may vary from this expectation depending in part on the level of revenue and profits.
R&D spending, excluding in-process R&D, is expected to be approximately $4.3 billion in 2001, up from $3.9 billion in 2000. The higher R&D spending is primarily for next generation manufacturing technology and product development.
Capital spending for 2001 is expected to be approximately $7.5 billion, up from $6.7 billion in 2000. Despite near term uncertainty, the company will use its financial strength to invest for the future in key areas such as 0.13-micron process technology which will enable the company to produce new and more powerful microprocessors beginning later this year, and 300 mm process technology which is expected to lead to microprocessor unit cost reductions of approximately 30 percent in 2002 and beyond.
The company expects gains from investments and interest and other income for the first quarter of 2001 to be approximately $180 million. This expectation assumes no net gains from the sale of equity investments, and will vary depending on equity market levels and volatility, the realization of expected gains on investments, including gains on investments acquired by third parties, interest rates, cash balances, mark-to-market of derivative instruments and assuming no unanticipated items
The tax rate for 2001 is expected to be approximately 30.3 percent, excluding the impact of acquisition-related costs, down from 31.8 percent in 2000, primarily due to a change in the expected distribution of earnings among various tax jurisdictions.
Depreciation is expected to be approximately $880 million in the first quarter, and $4.0 billion for the full year 2001.
Amortization of goodwill and other acquisition-related intangibles and costs is expected to be approximately $455 million in the first quarter, and $1.8 billion for the full year 2001.
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Ralph
Fourth Quarter Earnings Excluding Acquisition-Related Costs* $0.38 per share Fourth Quarter Earnings Per Share $0.32
SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 16, 2001--
Intel Corporation today announced revenue for 2000 of $33.7 billion, up 15 percent from 1999, resulting in the company's fourteenth consecutive year of revenue growth. Fourth quarter revenue was $8.7 billion, up 6 percent from the fourth quarter of 1999, and approximately flat with the third quarter of 2000.
Acquisition-related costs consist of one-time write-offs of purchased in-process research and development and the ongoing amortization of goodwill and other acquisition-related intangibles and costs. Intangibles include, for example, the value of the acquired companies' developed technology, trademarks and workforce-in-place. Earnings excluding acquisition-related costs differ from earnings presented according to generally accepted accounting principles because they exclude these costs.
For 2000, net income excluding acquisition-related costs was $12.1 billion, up 49 percent from $8.1 billion in 1999. For 2000, earnings excluding acquisition-related costs were $1.73 per share, an increase of 48 percent from $1.17 in 1999.
Including acquisition-related costs in accordance with generally accepted accounting principles, net income in 2000 was $10.5 billion, up 44 percent from $7.3 billion in 1999. For 2000, earnings per share were $1.51, up 44 percent from $1.05 in 1999.
Acquisition-related costs in 2000 consisted of $109 million in one-time charges for purchased in-process research and development and $1.6 billion of amortization of goodwill and other acquisition-related intangibles and costs.
For the fourth quarter, net income excluding acquisition-related costs was $2.6 billion, up 10 percent from the fourth quarter of 1999 and down 9 percent sequentially. Fourth quarter earnings excluding acquisition-related costs were $0.38 per share, an increase of 12 percent from $0.34 in the fourth quarter of 1999, and down 7 percent sequentially.
Including acquisition-related costs in accordance with generally accepted accounting principles, fourth quarter net income was $2.2 billion, up 4 percent from fourth quarter 1999 and down 13 percent sequentially. Earnings per share were $0.32, up 7 percent from $0.30 in the fourth quarter of 1999 and down 11 percent sequentially.
Acquisition-related costs in the fourth quarter consisted of $18 million in one-time charges for purchased in-process research and development and $459 million of amortization of goodwill and other acquisition-related intangibles and costs.
``This was a year of record annual revenue and earnings; yet, slowing economic conditions impacted fourth quarter growth and are causing near-term uncertainty,\224 said Craig R. Barrett, president and chief executive officer. \223Looking forward, we are confident in our business strategy and competitive position,'' he continued. ``Our financial strength enables us aggressively to increase our current investments in capital and R&D spending to ensure future leadership and readiness with 0.13-micron process manufacturing, 300 mm technology and a strong product portfolio.''
During the quarter, the company announced the acquisition of the consulting group of Network Solutions Private Ltd. and closed the previously announced acquisition of Ziatech Corporation. In 2000, the company acquired 16 companies and businesses for over $2.7 billion, primarily focused on expanding the company's networking, communications and wireless businesses.
During the quarter, the company paid its quarterly cash dividend of $0.02 per share. The dividend was paid on Dec. 1, 2000, to stockholders of record on Nov. 7, 2000. Intel has paid a regular quarterly cash dividend for over eight years.
During the quarter, the company repurchased a total of 22.8 million shares of common stock, at a cost of $1.0 billion, under an ongoing program. For the year, the company repurchased a total of 73.5 million shares at a total cost of $4.0 billion. Since the program began in 1990, the company has repurchased 1.4 billion shares at a total cost of $22.2 billion.
BUSINESS OUTLOOK
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions or other business combinations that may be completed after Dec. 30, 2000.
Current negative trends in global economic conditions make it particularly difficult at present to predict product demand and other related matters.
The company's best estimate given the high level of economic uncertainty is that revenue for the first quarter of 2001 will be down 15 percent, plus or minus several points, from fourth quarter revenue of $8.7 billion, due to seasonal factors and the impact of slowing worldwide economies.
Gross margin percentage in the first quarter of 2001 is expected to be 58 percent, plus or minus a couple of points, down from 63 percent in the fourth quarter primarily due to lower revenue. The company's expectation for gross margin percentage for 2001 is uncertain at this time, however, it is the company's goal to at least equal first quarter gross margin percentage for the full year. In the short term, Intel's gross margin percentage varies primarily with revenue levels, product mix, changes in unit costs and timing of factory ramps and associated costs.
Expenses (R&D, excluding in-process R&D, plus MG&A) in the first quarter of 2001 are expected to be approximately flat with fourth quarter expenses of $2.4 billion. The company continues to invest heavily in R&D for its future product roadmap and expansion into new networking and communications businesses. Expenses may vary from this expectation depending in part on the level of revenue and profits.
R&D spending, excluding in-process R&D, is expected to be approximately $4.3 billion in 2001, up from $3.9 billion in 2000. The higher R&D spending is primarily for next generation manufacturing technology and product development.
Capital spending for 2001 is expected to be approximately $7.5 billion, up from $6.7 billion in 2000. Despite near term uncertainty, the company will use its financial strength to invest for the future in key areas such as 0.13-micron process technology which will enable the company to produce new and more powerful microprocessors beginning later this year, and 300 mm process technology which is expected to lead to microprocessor unit cost reductions of approximately 30 percent in 2002 and beyond.
The company expects gains from investments and interest and other income for the first quarter of 2001 to be approximately $180 million. This expectation assumes no net gains from the sale of equity investments, and will vary depending on equity market levels and volatility, the realization of expected gains on investments, including gains on investments acquired by third parties, interest rates, cash balances, mark-to-market of derivative instruments and assuming no unanticipated items
The tax rate for 2001 is expected to be approximately 30.3 percent, excluding the impact of acquisition-related costs, down from 31.8 percent in 2000, primarily due to a change in the expected distribution of earnings among various tax jurisdictions.
Depreciation is expected to be approximately $880 million in the first quarter, and $4.0 billion for the full year 2001.
Amortization of goodwill and other acquisition-related intangibles and costs is expected to be approximately $455 million in the first quarter, and $1.8 billion for the full year 2001.
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Ralph