Arik Hesseldahl

Recent Posts by Arik Hesseldahl

Intel Once Again Beats the Street

Intel knocked down the expectations of analysts once again, reporting a profit of 56 cents a share on sales of $12.9 billion.

The results beat the consensus view of analysts who had expected Intel to report per-share earnings of 50 cents on sales of $12.84 billion.

The company also said it expects to see sales in the range of $13.1 billion and $13.7 billion and gross margin of about 62 percent in the quarter ended June. This compares with a street consensus of 55 cents a share at $13.43 billion in sales.

Intel’s statement is below. The company will hold a conference call shortly to discuss the results with analysts.

SANTA CLARA, Calif.–(BUSINESS WIRE)–

Intel Corporation today reported quarterly revenue of $12.9 billion, operating income of $3.8 billion, net income of $2.7 billion and EPS of $0.53. The company generated approximately $3.0 billion in cash from operations, paid dividends of $1.0 billion and used $1.5 billion to repurchase stock.

“The first quarter was a solid start to what’s expected to be another growth year for Intel,” said Paul Otellini, Intel president and CEO. “In the second quarter we’ll see the first Intel-based smartphones in the market, ship products based on 22nm tri-gate technology in high volume, and accelerate the ramp of our best server product ever, providing a tremendous foundation for growth in 2012 and beyond.”

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 April 17.

Q2 2012 (GAAP, unless otherwise stated)

Revenue: $13.6 billion, plus or minus $500 million.
Gross margin percentage: 62 percent and 63 percent Non-GAAP (excluding amortization of acquisition-related intangibles), both plus or minus a couple of percentage points.
R&D plus MG&A spending: approximately $4.6 billion.
Amortization of acquisition-related intangibles: approximately $80 million.
Impact of equity investments and interest and other: loss of approximately $20 million.
Depreciation: approximately $1.6 billion.

Full-Year 2012 (GAAP, unless otherwise stated)

Gross margin percentage: 64 percent and 65 percent Non-GAAP (excluding amortization of acquisition-related intangibles), both plus or minus a few percentage points, unchanged.
Spending (R&D plus MG&A): $18.3 billion, plus or minus $200 million, unchanged.
Amortization of acquisition-related intangibles: approximately $300 million, unchanged.
Depreciation: $6.4 billion, plus or minus $100 million, down $100 million from prior expectations.
Tax Rate: approximately 28 percent down from prior expectations of 29 percent.
Full-year capital spending: $12.5 billion, plus or minus $400 million, unchanged.

For additional information regarding Intel’s results and Business Outlook, please see the CFO commentary at: www.intc.com/results.cfm.


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