Wednesday, October 19th 2011

Intel Reports Record Revenue and Profit

Intel Corporation today reported third-quarter results, setting new records for microprocessor units shipped, EPS, earnings and revenue, which was up 28 percent year-over-year.

"Intel delivered record-setting results again in Q3, surpassing $14 billion in revenue for the first time, driven largely by double-digit unit growth in notebook PCs," said Paul Otellini, Intel president and CEO. "We also saw continued strength in the data center fueled by the ongoing growth of mobile and cloud computing."

On a Non-GAAP basis, revenue was $14.3 billion, operating income was $5.1 billion, net income was $3.7 billion and EPS was 69 cents. On a GAAP basis, the company reported third-quarter revenue of $14.2 billion, operating income of $4.8 billion, net income of $3.5 billion and EPS of 65 cents.

The company generated approximately $6.3 billion in cash from operations, paid cash dividends of $1.1 billion, and used $4.0 billion to repurchase 186 million shares of common stock. Intel's board of directors also voted to increase the company's buyback authorization by $10.0 billion, raising the total unused balance to $14.2 billion at the end of the third quarter. The company also completed a senior notes offering of $5.0 billion primarily for the purpose of repurchasing stock.

Q3 2011 Key Financial Information (GAAP)
Business unit trends:
  • PC Client Group revenue of $9.4 billion, up 22 percent year-over-year.
  • Data Center Group revenue of $2.5 billion, up 15 percent year-over-year.
  • Other Intel architecture group revenue up 68 percent year-over-year.
  • Intel Atom microprocessor and chipset revenue of $269 million, down 32 percent year-over-year.
  • McAfee Inc. and Intel Mobile Communications contributed revenue of $1.1 billion.
  • The platform average selling price (ASP) was up year-over-year and flat sequentially.
  • Gross margin was 63.4 percent, 0.6 percent below the midpoint of the company's expectation.
  • R&D plus MG&A spending was $4.2 billion, slightly below the company's expectation.
  • Net gain of $107 million from equity investments and interest and other, consistent with the company's expectations of approximately $100 million.
  • The effective tax rate was 29 percent, above the company's expectation of approximately 28 percent.
  • The company used $4.0 billion to repurchase 186 million shares of common stock.
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 Oct. 18.

Q4 2011 (GAAP, unless otherwise stated)
  • Revenue: $14.7 billion, plus or minus $500 million, on both a GAAP and Non-GAAP basis.
  • Gross margin percentage: 65 percent, plus or minus a couple percentage points.
  • Non-GAAP gross margin percentage: 66 percent plus or minus a couple percentage points, excluding certain accounting impacts and expenses related to acquisitions.
  • R&D plus MG&A spending: approximately $4.3 billion.
  • Amortization of acquisition-related intangibles: approximately $75 million.
  • Impact of equity investments and interest and other: a net loss of approximately $30 million.
  • Depreciation: approximately $1.4 billion.
  • Tax Rate: approximately 28 percent.
  • Full-year capital spending: $10.5 billion, plus or minus $300 million.
  • 2011 will have 53 weeks of business versus the typical 52 weeks.
For additional information regarding Intel's results and Business Outlook, please see the CFO commentary here.Source: Intel Investor Relations
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11 Comments on Intel Reports Record Revenue and Profit

#1
btarunr
Editor & Senior Moderator
by:
Intel Atom microprocessor and chipset revenue of $269 million, down 32 percent year-over-year.
Ruh-roh.
Posted on Reply
#2
n-ster
by: btarunr
Ruh-roh.
I saw that coming :/ I also saw the recent rise coming, bought intel at 19.50 in the beginning of Sept.

With ARMs, tablets and better low-powered AMD processors introduced, and Atom not really improving, it was only a matter of time before Atom would start to become old news
Posted on Reply
#3
laszlo
so atom get nuked but this is like a mosquito bite to them;wonder what has replaced in the market the atom or the demand has contracted?

as the rest of the numbers i can't read them as so many 00000 involved ;whatever they do seems they on track and skynet is coming
Posted on Reply
#4
HalfAHertz
Hail to our microprocessor overlords! D:
Posted on Reply
#5
Frick
Fishfaced Nincompoop
by: laszlo
so atom get nuked but this is like a mosquito bite to them;wonder what has replaced in the market the atom or the demand has contracted?
The market has shifted a bit there, but I think part of it is becuase of AMD's offereings there.
Posted on Reply
#6
NC37
by: laszlo
so atom get nuked but this is like a mosquito bite to them;wonder what has replaced in the market the atom or the demand has contracted?

as the rest of the numbers i can't read them as so many 00000 involved ;whatever they do seems they on track and skynet is coming
Likely demand has shifted from netbooks to tablets. Frankly if I'm buying a tiny machine, I'd prolly go tablet over netbook too. But on the tablet front Intel obviously can't maintain vs iPad. Then you also got APUs coming in and chewing them up some more.

Also got more low end machines getting equipped with better CPUs since SB. Decent APU lappys are hitting in Atom price range too. Till it was removed, Best Buy ran a deal on an A6 dual graphics Asus laptop for $450. That is right in the Atom territory. If I didn't have so much set aside for TOR/BF3, I would have snagged one.
Posted on Reply
#7
laszlo
i like this part:

R&D plus MG&A spending was $4.2 billion, slightly below the company's expectation
Posted on Reply
#8
ensabrenoir
When its all said and done.....this is what its all about. High performance and high profit. Intel is happy shareholders are happy consumer are. Happy. The atom needs some love and attention. As posted earlier. Its all about tablets and mobile devices with the general population. That's where intel needs a little refocusing.
Posted on Reply
#9
WarraWarra
Glad we could give Intel advice and they actually followed it.
Amazing what Intel customer advice can do to a company bottom line.

There is no way Intel could compete with a usd$78.00 7" & 10" android tablet with more features than Ipad3 & Ipad4 so Intel "nuke" Atom.

PS, now that Intel has too much money they should thank their customers and pay it forward / reduce the cpu prices before some trade commission or gov. investigates them for price fixing & unfair trade practices. Double the price for Apple as they rip people off so rip them off.
Posted on Reply
#10
TheGuruStud
by: WarraWarra
Glad we could give Intel advice and they actually followed it.
Amazing what Intel customer advice can do to a company bottom line.

There is no way Intel could compete with a usd$78.00 7" & 10" android tablet with more features than Ipad3 & Ipad4 so Intel "nuke" Atom.

PS, now that Intel has too much money they should thank their customers and pay it forward / reduce the cpu prices before some trade commission or gov. investigates them for price fixing & unfair trade practices. Double the price for Apple as they rip people off so rip them off.
If AMD only got 1 billion out of them for a couple decades of illegal business practices....and you just saw their profit, no one is going to be doing anything against them. They're already bought. You can bank on that.
Posted on Reply
#11
[H]@RD5TUFF
Yay! This is good news for my portfolio.
Posted on Reply
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