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

Thu Jan 17, 2013 4:01pm EST

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Generates $18.9 Billion in Cash from Operations
SANTA CLARA, Calif.--(Business Wire)--
Intel Corporation today 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.

 GAAP Financial Comparison                                                          
 Annual                                                                             
                           2012                 2011                 vs. 2011       
 Revenue                   $53.3 billion        $54.0 billion        down 1.2%      
 Gross Margin              62.1%                62.5%                down 0.4 pts.  
 Operating Income          $14.6 billion        $17.5 billion        down 16%       
 Net Income                $11.0 billion        $12.9 billion        down 15%       
 Earnings Per Share        $2.13                $2.39                down 11%       


 Non-GAAP Financial Comparison                                    
 Annual                                                           
                     2012           2011           vs. 2011       
 Gross Margin        63.2%          63.4%          down 0.2 pts.  
 Operating Income    $15.5 billion  $18.2 billion  down 15%       
 Net Income          $11.6 billion  $13.5 billion  down 14%       
 Earnings Per Share  $2.24          $2.50          down 10%       
 Non-GAAP results exclude the amortization of acquisition-related intangible 
 assets and the related income tax effect of these charges.       


 GAAP Financial Comparison                                                          
 Quarterly                                                                          
                           Q4 2012              Q4 2011              vs. Q4 2011    
 Revenue                   $13.5 billion        $13.9 billion        down 3%        
 Gross Margin              58.0%                64.5%                down 6.5 pts.  
 Operating Income          $3.2 billion         $4.6 billion         down 31%       
 Net Income                $2.5 billion         $3.4 billion         down 27%       
 Earnings Per Share        48 cents             64 cents             down 25%       


 Non-GAAP Financial Comparison                                  
 Quarterly                                                      
                     Q4 2012       Q4 2011       vs. Q4 2011    
 Gross Margin        59.0%         65.4%         down 6.4 pts.  
 Operating Income    $3.4 billion  $4.8 billion  down 30%       
 Net Income          $2.6 billion  $3.5 billion  down 26%       
 Earnings Per Share  51 cents      67 cents      down 24%       
 Non-GAAP results exclude the amortization of acquisition-related intangible 
 assets and the related income tax effect of these charges.     


Risk Factors

The above statements and any others in this document that refer to plans and
expectations for the first quarter, the year and the future are forward-looking
statements that involve a number of risks and uncertainties. Words such as
"anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates,"
"may," "will," "should" and their variations identify forward-looking
statements. Statements that refer to or are based on projections, uncertain
events or assumptions also identify forward-looking statements. 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 company`s expectations.

* Demand could be different from Intel's expectations due to factors including
changes in business and economic conditions; customer acceptance of Intel`s and
competitors` products; supply constraints and other disruptions affecting
customers; changes in customer order patterns including order cancellations; and
changes in the level of inventory at customers. Uncertainty in global economic
and financial conditions poses a risk that consumers and businesses may defer
purchases in response to negative financial events, which could negatively
affect product demand and other related matters. 
* Intel operates in intensely competitive industries that are characterized by a
high percentage of costs that are fixed or difficult to reduce in the short term
and product demand that is highly variable and difficult to forecast. Revenue
and the gross margin percentage are affected by the timing of Intel product
introductions and the demand for and market acceptance of Intel's products;
actions taken by Intel's competitors, including product offerings and
introductions, marketing programs and pricing pressures and Intel`s response to
such actions; and Intel`s ability to respond quickly to technological
developments and to incorporate new features into its products. 
* The gross margin percentage could vary significantly from expectations based
on capacity utilization; variations in inventory valuation, including variations
related to the timing of qualifying products for sale; changes in revenue
levels; segment product mix; the timing and execution of the manufacturing ramp
and associated costs; start-up costs; excess or obsolete inventory; changes in
unit costs; defects or disruptions in the supply of materials or resources;
product manufacturing quality/yields; and impairments of long-lived assets,
including manufacturing, assembly/test and intangible assets. 
* The tax rate expectation is based on current tax law and current expected
income. The tax rate may be affected by the jurisdictions in which profits are
determined to be earned and taxed; changes in the estimates of credits, benefits
and deductions; the resolution of issues arising from tax audits with various
tax authorities, including payment of interest and penalties; and the ability to
realize deferred tax assets. 
* Gains or losses from equity securities and interest and other could vary from
expectations depending on gains or losses on the sale, exchange, change in the
fair value or impairments of debt and equity investments; interest rates; cash
balances; and changes in fair value of derivative instruments. The majority of
our marketable equity security portfolio balance is concentrated in ASML
Holding, N.V., and declines in value could result in impairment charges,
impacting gains or losses on equity securities. 
* Intel's results could be affected by adverse economic, social, political and
physical/infrastructure conditions in countries where Intel, its customers or
its suppliers operate, including military conflict and other security risks,
natural disasters, infrastructure disruptions, health concerns and fluctuations
in currency exchange rates. 
* Expenses, particularly certain marketing and compensation expenses, as well as
restructuring and asset impairment charges, vary depending on the level of
demand for Intel's products and the level of revenue and profits. 
* Intel`s results could be affected by the timing of closing of acquisitions and
divestitures. 
* Intel`s current chief executive officer plans to retire in May 2013 and the
Board of Directors is working to choose a successor. The succession and
transition process may have a direct and/or indirect effect on the business and
operations of the company. In connection with the appointment of the new CEO,
the company will seek to retain our executive management team (some of whom are
being considered for the CEO position), and keep employees focused on achieving
the company`s strategic goals and objectives. 
* Intel's results could be affected by adverse effects associated with product
defects and errata (deviations from published specifications), and by litigation
or regulatory matters involving intellectual property, stockholder, consumer,
antitrust, disclosure and other issues, such as the litigation and regulatory
matters described in Intel's SEC reports. An unfavorable ruling could include
monetary damages or an injunction prohibiting Intel from manufacturing or
selling one or more products, precluding particular business practices,
impacting Intel`s ability to design its products, or requiring other remedies
such as compulsory licensing of intellectual property.

A detailed discussion of these and other factors that could affect Intel`s
results is included in Intel`s SEC filings, including the company`s most recent
Form 10-Q and report on Form 10-K. 

Earnings Webcast

Intel will hold a public webcast at 2 p.m. PDT today on its Investor Relations
website at www.intc.com. A webcast replay and MP3 download will also be
available on the site. 

Intel plans to report its earnings for the first quarter of 2013 on April 16,
2013. Immediately following the earnings report, the company plans to publish a
commentary by Stacy J. Smith, executive vice president, chief financial officer,
and director of corporate strategy, at www.intc.com/results.cfm. A public
webcast of Intel`s earnings conference call will follow at 2 p.m. PDT at
www.intc.com. 

About Intel

Intel (NASDAQ: INTC) is a world leader in computing innovation. The company
designs and builds the essential technologies that serve as the foundation for
the world`s computing devices. Additional information about Intel is available
at newsroom.intel.com and blogs.intel.com. 

Intel, the Intel logo and Ultrabook are trademarks of Intel Corporation in the
United States and other countries. 

*Other names and brands may be claimed as the property of others.

 INTEL CORPORATION                                                                                                                      
 CONSOLIDATED SUMMARY STATEMENT OF INCOME DATA                                                                                          
 (In millions, except per share amounts)                                                                                                
                                                                                                                                        
                                                     Three Months Ended                               Twelve Months Ended               
                                                     Dec 29,                         Dec 31,          Dec 29,             Dec 31,       
                                                     2012                            2011             2012                2011          
 NET REVENUE                                         $            13,477             $     13,887     $     53,341        $     53,999  
 Cost of sales                                                    5,660                    4,935            20,190              20,242  
 GROSS MARGIN                                                     7,817                    8,952            33,151              33,757  
                                                                                                                                        
 Research and development                                         2,629                    2,308            10,148              8,350   
 Marketing, general and administrative                            1,958                    1,973            8,057               7,670   
 R&D AND MG&A                                                     4,587                    4,281            18,205              16,020  
 Amortization of acquisition-related intangibles                  75                       72               308                 260     
 OPERATING EXPENSES                                               4,662                    4,353            18,513              16,280  
 OPERATING INCOME                                                 3,155                    4,599            14,638              17,477  
 Gains (losses) on equity investments, net                        60                       17               141                 112     
 Interest and other, net                                          (11)                     (29)             94                  192     
 INCOME BEFORE TAXES                                              3,204                    4,587            14,873              17,781  
 Provision for taxes                                              736                      1,227            3,868               4,839   
 NET INCOME                                          $            2,468              $     3,360      $     11,005        $     12,942  
                                                                                                                                        
 BASIC EARNINGS PER COMMON SHARE                     $            0.50               $     0.66       $     2.20          $     2.46    
 DILUTED EARNINGS PER COMMON SHARE                   $            0.48               $     0.64       $     2.13          $     2.39    
                                                                                                                                        
 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                                                                                            
                           BASIC                                  4,968                    5,069            4,996               5,256   
                           DILUTED                                5,095                    5,242            5,160               5,411   


 INTEL CORPORATION                                                                                                    
 CONSOLIDATED SUMMARY BALANCE SHEET DATA                                                                              
 (In millions)                                                                                                        
                                                                                                                      
                                                                       Dec 29,         Sept 29,         Dec 31,       
                                                                       2012            2012             2011          
 CURRENT ASSETS                                                                                                       
               Cash and cash equivalents                               $     8,478     $      3,520     $     5,065   
               Short-term investments                                        3,999            2,483           5,181   
               Trading assets                                                5,685            4,462           4,591   
               Accounts receivable, net                                      3,833            3,938           3,650   
               Inventories:                                                                                           
                                         Raw materials                       478              614             644     
                                         Work in process                     2,219            2,363           1,680   
                                         Finished goods                      2,037            2,342           1,772   
                                                                             4,734            5,319           4,096   
               Deferred tax assets                                           2,117            1,633           1,700   
               Other current assets                                          2,512            1,659           1,589   
 TOTAL CURRENT ASSETS                                                        31,358           23,014          25,872  
                                                                                                                      
 Property, plant and equipment, net                                          27,983           27,157          23,627  
 Marketable equity securities                                                4,424            3,924           562     
 Other long-term investments                                                 493              469             889     
 Goodwill                                                                    9,710            9,623           9,254   
 Identified intangible assets, net                                           6,235            6,221           6,267   
 Other long-term assets                                                      4,148            4,033           4,648   
               TOTAL ASSETS                                            $     84,351    $      74,441    $     71,119  
                                                                                                                      
 CURRENT LIABILITIES                                                                                                  
               Short-term debt                                         $     312       $      56        $     247     
               Accounts payable                                              3,023            3,188           2,956   
               Accrued compensation and benefits                             2,972            2,320           2,948   
               Accrued advertising                                           1,015            1,096           1,134   
               Deferred income                                               1,932            1,954           1,929   
               Other accrued liabilities                                     3,644            3,339           2,814   
 TOTAL CURRENT LIABILITIES                                                   12,898           11,953          12,028  
                                                                                                                      
 Long-term debt                                                              13,136           7,100           7,084   
 Long-term deferred tax liabilities                                          3,412            2,904           2,617   
 Other long-term liabilities                                                 3,702            3,215           3,479   
 Stockholders' equity:                                                                                                
               Preferred stock                                               -                -               -       
               Common stock and capital in excess of par value               19,464           19,278          17,036  
               Accumulated other comprehensive income (loss)                 (399)            (501)           (781)   
               Retained earnings                                             32,138           30,492          29,656  
 TOTAL STOCKHOLDERS' EQUITY                                                  51,203           49,269          45,911  
               TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY              $     84,351    $      74,441    $     71,119  


 INTEL CORPORATION                                                                                             
 SUPPLEMENTAL FINANCIAL AND OTHER INFORMATION                                                                  
 (In millions)                                                                                                 
                                                                                                               
                                                                         Q4 2012       Q3 2012       Q4 2011   
 CASH INVESTMENTS:                                                                                             
 Cash and short-term investments                                         $12,477       $6,003        $10,246   
 Trading assets - marketable debt securities                             5,685         4,462         4,591     
 Total cash investments                                                  $18,162       $10,465       $14,837   
                                                                                                               
 CURRENT DEFERRED INCOME:                                                                                      
 Deferred income on shipments of components to distributors              $694          $791          $751      
 Deferred income from software and services group                        1,238         1,163         1,178     
 Total current deferred income                                           $1,932        $1,954        $1,929    
                                                                                                               
 SELECTED CASH FLOW INFORMATION:                                                                               
 Depreciation                                                            $1,641        $1,625        $1,333    
 Share-based compensation                                                $272          $276          $241      
 Amortization of intangibles                                             $364          $268          $256      
 Capital spending                                                        ($2,504)      ($2,887)      ($2,844)  
 Investments in non-marketable equity instruments                        ($117)        ($163)        ($124)    
 Equity investment in ASML Holding N.V.                                  -             (3,218)       -         
 Stock repurchase program                                                ($1,000)      (1,165)       (4,133)   
 Proceeds from sales of shares to employees & excess tax benefit         $139          $299          $1,129    
 Issuance of long-term debt                                              $6,124        -             -         
 Dividends paid                                                          ($1,119)      ($1,125)      ($1,070)  
 Net cash (used)/received for acquisitions/divestitures                  ($70)         ($110)        ($244)    
                                                                                                               
 EARNINGS PER COMMON SHARE INFORMATION:                                                                        
 Weighted average common shares outstanding - basic                      4,968         4,996         5,069     
 Dilutive effect of employee equity incentive plans                      73            93            115       
 Dilutive effect of convertible debt                                     54            64            58        
 Weighted average common shares outstanding - diluted                    5,095         5,153         5,242     
                                                                                                               
 STOCK BUYBACK:                                                                                                
 Shares repurchased                                                      47            46            174       
 Cumulative shares repurchased (in billions)                             4.3           4.2           4.1       
 Remaining dollars authorized for buyback (in billions)                  $5.3          $6.3          $10.1     
                                                                                                               
 OTHER INFORMATION:                                                                                            
 Employees (in thousands)                                                105.0         104.7         100.1     


 INTEL CORPORATION                                                                                                                                       
 SUPPLEMENTAL OPERATING GROUP RESULTS                                                                                                                    
 (In millions)                                                                                                                                           
                                                                                                                                                         
                                                                                    Three Months Ended                   Twelve Months Ended             
                                                                                    Dec 29,                Dec 31,       Dec 29,                Dec 31,  
                                                                                    2012                   2011          2012                   2011     
 Net Revenue                                                                                                                                             
           PC Client Group                                                       $  8,506           $      9,047      $  34,274          $      35,406   
           Data Center Group                                                        2,830                  2,717         10,741                 10,129   
           Other Intel Architecture Group                                           1,018                  1,099         4,378                  5,005    
           Intel Architecture Group                                                 12,354                 12,863        49,393                 50,540   
                                                                                                                                                         
           Software and Services Group                                              636                    578           2,381                  1,870    
           All other                                                                487                    446           1,567                  1,589    
           TOTAL NET REVENUE                                                     $  13,477          $      13,887     $  53,341          $      53,999   
                                                                                                                                                         
                                                                                                                                                         
 Operating income (loss)                                                                                                                                 
           PC Client Group                                                       $  2,817           $      3,952      $  13,053          $      14,793   
           Data Center Group                                                        1,329                  1,453         5,073                  5,100    
           Other Intel Architecture Group                                           (495)                  (368)         (1,377)                (577)    
           Intel Architecture Group                                              $  3,651           $      5,037         16,749                 19,316   
                                                                                                                                                         
           Software and Services Group                                              (36)                   16            (11)                   (32)     
           All other                                                                (460)                  (454)         (2,100)                (1,807)  
           TOTAL OPERATING INCOME                                                $  3,155           $      4,599      $  14,638          $      17,477   


 In the second quarter of 2012, we reorganized our smartphone, tablet, and mobile communication businesses within the other Intel architecture operating group to enable us to move faster and with greater collaboration and synergies in the market segment for mobile devices. As part of the reorganization, the former Netbook and Tablet Group has been separated into the following new operating groups: Netbook Group, Tablet Group, and Service Provider Group. Additionally, the former Ultra-Mobility Group is now 
 the Phone Group. The other Intel architecture operating group continues to include the Intelligent Systems Group and Intel Mobile Communications. The other Intel architecture operating group aggregation has not changed. Our operating groups shown above are comprised of the following: 
                                                                                                                                                                                                                      
 • PC Client Group: Delivering platforms designed for the notebook and desktop (including high-end enthusiast PCs) market segments; and wireless connectivity products.                                               
                                                                                                                                                                                                                      
 • Data Center Group: Delivering platforms designed for the server, workstation, and storage computing market segments; and wired network connectivity products.                                                      
                                                                                                                                                                                                                      
 • Other Intel Architecture Group consist of the following:                                                                                                                                                           
   • Intelligent Systems Group: Delivering platforms designed for embedded applications.                                                                                                                              
   • Netbook Group: Delivering platforms designed for the netbook market segment.                                                                                                                                     
   • Intel Mobile Communications: Delivering mobile phone components such as baseband processors, radio frequency transceivers, and power management chips.                                                           
                                                                                                                                                                                                                      
   • Tablet Group: Delivering platforms designed for the tablet market segment.                                                                                                                                       
   • Phone Group: Delivering platforms designed for the smartphone market segment.                                                                                                                                    
   • Service Provider Group: Delivering gateway and set top box components.                                                                                                                                           
                                                                                                                                                                                                                      
 • Software and Services Group consists of the following:                                                                                                                                                             
   • McAfee: A wholly owned subsidiary delivering software products for endpoint security, network and content security, risk and compliance, and consumer and mobile security.                                       
   • Wind River Software Group: A wholly owned subsidiary delivering software optimized products for the embedded and mobile market segments.                                                                         
   • Software and Services Group: Delivering software products and services that promote Intel Architecture as the platform of choice for software development.                                                       
                                                                                                                                                                                                                      
 All Other consists of the following:                                                                                                                                                                                 
   • Non-Volatile Memory Solutions Group: Delivering NAND flash memory products for use in a variety of devices.                                                                                                      
   • Corporate: Revenue, expenses and charges such as:                                                                                                                                                                
                                                                                            • A portion of profit-dependent compensation and other expenses not allocated to the operating groups.                    
                                                                                            • Divested businesses and results of seed businesses that support our initiatives.                                        
                                                                                            
• Acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and goodwill.  


 INTEL CORPORATION                                                                                                                               
 SUPPLEMENTAL PLATFORM REVENUE INFORMATION                                                                                                       
                                                                                                                                                 
                                                          Q4 2012                            Q4 2012                           2012              
                                                          compared to Q3 2012                compared to Q4 2011               compared to 2011  
 PC Client Platform                                                                                                                              
              Unit Volumes                                (4%)                               (6%)                              (1%)              
              Average Selling Prices                      2%                                 0%                                (2%)              
                                                                                                                                                 
 Data Center Platform                                                                                                                            
              Unit Volumes                                0%                                 (1%)                              (1%)              
              Average Selling Prices                      8%                                 5%                                6%                
                                                                                                                                                 
              PC Client Group Notebook and Desktop Platform Key Drivers                                                                          
              -Notebook platform average selling prices decreased 6% from 2011 to 2012                                                           
              -Notebook platform volumes increased 2% from 2011 to 2012                                                                          
              -Desktop platform average selling prices increased 4% from 2011 to 2012                                                            
              -Desktop platform volume decreased 5% from 2011 to 2012                                                                            


 INTEL CORPORATION                                                                                                                                    
 SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS                                                                                             
                                                                                                                                                      
 In addition to disclosing financial results in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this document contains non-GAAP financial measures that we believe are helpful in understanding and comparing our past financial performance and our expectations for future results. The non-GAAP financial measures disclosed by the company exclude the amortization of acquisition-related intangible assets, as well as the related income tax effect. Amortization of acquisition 
 -related intangible assets consists of the amortization of developed technology, trade names, and customer relationships acquired in connection with business combinations. We record charges relating to the amortization of these intangibles in our GAAP financial statements. Amortization charges for our acquisition-related intangible assets are inconsistent in size and are significantly impacted by the timing and valuation of our acquisitions. Consequently, our non-GAAP adjustment excludes these charges to 
 facilitate an evaluation of our current operating performance and comparisons to our past operating performance.                                     
                                                                                                                                                      
 Set forth below are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. The non-GAAP financial measures disclosed by the company have limitations and should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated. Management believes the non-GAAP financial measures are 
 appropriate for period to period comparisons in our budget, planning and evaluation processes, and to show the reader how our performance compares to other periods. 
                                                                                                                                                      
                                                                            (In millions, except per share amounts)                                   
                                                                            Three Months Ended                      Twelve Months Ended               
                                                                            Dec 29,             Dec 31,             Dec 29,             Dec 31,       
                                                                            2012                2011                2012                2011          
                                                                                                                                                      
 GAAP GROSS MARGIN                                                          $     7,817         $     8,952         $     33,151        $     33,757  
 Adjustment for the amortization of acquisition-related intangibles               137                 137                 557                 482     
 NON-GAAP GROSS MARGIN                                                      $     7,954         $     9,089         $     33,708        $     34,239  
                                                                                                                                                      
 GAAP GROSS MARGIN PERCENTAGE                                                     58.0%               64.5%               62.1%               62.5%   
 Adjustment for the amortization of acquisition-related intangibles               1.0%                0.9%                1.1%                0.9%    
 NON-GAAP GROSS MARGIN PERCENTAGE                                                 59.0%               65.4%               63.2%               63.4%   
                                                                                                                                                      
 GAAP OPERATING INCOME                                                      $     3,155         $     4,599         $     14,638        $     17,477  
 Adjustment for the amortization of acquisition-related intangibles               212                 209                 865                 742     
 NON-GAAP OPERATING INCOME                                                  $     3,367         $     4,808         $     15,503        $     18,219  
                                                                                                                                                      
 GAAP NET INCOME                                                            $     2,468         $     3,360         $     11,005        $     12,942  
 Adjustment for:                                                                                                                                      
 Amortization of acquisition-related intangibles                                  212                 209                 865                 742     
 Income tax effect                                                                (71)                (46)                (290)               (160)   
 NON-GAAP NET INCOME                                                        $     2,609         $     3,523         $     11,580        $     13,524  
                                                                                                                                                      
 GAAP DILUTED EARNINGS PER COMMON SHARE                                     $     0.48          $     0.64          $     2.13          $     2.39    
 Adjustment for:                                                                                                                                      
 Amortization of acquisition-related intangibles                                  0.04                0.04                0.17                0.14    
 Income tax effect                                                                (0.01)              (0.01)              (0.06)              (0.03)  
 NON-GAAP DILUTED EARNINGS PER COMMON SHARE                                 $     0.51          $     0.67          $     2.24          $     2.50    


Intel Corporation
Reuben Gallegos, 408-765-5374 (Investor Relations)
reuben.m.gallegos@intel.com
Jon Carvill, 503-696-5069 (Media Relations)
jon.carvill@intel.com

Copyright Business Wire 2013

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