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Industry News
Intel First-Quarter Revenue at $8.9 Billion, EPS 27 cents
Posted On : 2007-04-18 10:18:41( TIMEZONE : IST )
SANTA CLARA, Calif., April 17, 2007 - Intel Corporation today announced first-quarter revenue of $8.9 billion, operating income of $1.7 billion, net income of $1.6 billion and earnings per share (EPS) of 27 cents. The results included the effect of a $300-million reversal of previously accrued taxes that increased EPS by approximately 5 cents.
"The strong momentum of our industry-leading Intel® CoreTM microarchitecture product family, combined with ongoing structural cost improvements, delivered solid financial results in the first quarter," said Intel President and CEO Paul Otellini. "Our product strength is reflected in the fact that average selling prices for the quarter held up well in a very competitive environment."
Financial and Key Product Trends
- First-quarter gross margin was 50.1 percent, higher than 49.6 percent in the previous quarter as lower microprocessor unit costs and the sale of previously reserved inventory more than offset the effects of higher 45 nanometer (nm) start-up costs and lower revenue.
- The company reached its goal of reducing the workforce to approximately 92,000 people, meeting the target one quarter ahead of schedule.
- Total microprocessor units were lower sequentially. The ASP was slightly lower driven by a lower mix within server processors, with desktop and mobile ASPs approximately flat.
- Chipset, motherboard and flash memory units were lower sequentially.
The following expectations do not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed after April 16.
Q2 2007 Outlook
- Revenue: Expected to be between $8.2 billion and $8.8 billion.
- Gross margin: 48 percent plus or minus a couple of points.
- Spending (R&D plus MG&A): Between $2.6 billion and $2.7 billion. In addition, the company expects a second-quarter restructuring charge of approximately $60 million.
- Net gains from equity investments and interest and other: Approximately $150 million.
- Tax rate: Approximately 31 percent.
- Depreciation: Between $1.1 billion and $1.2 billion.
2007 Outlook
- Gross margin: 51 percent plus or minus a few points, higher than the previous expectation of 50 percent plus or minus a few points.
- R&D: Approximately $5.6 billion, higher than the previous expectation of approximately $5.4 billion.
- MG&A: Approximately $5.1 billion, lower than the previous expectation of approximately $5.3 billion.
- Capital spending: $5.5 billion plus or minus $200 million, unchanged.
- Tax rate: Approximately 31 percent in the third and fourth quarters. The previous expectation was approximately 30 percent for the year.
- Depreciation: $4.8 billion plus or minus $100 million, unchanged.
The above statements and any others in this document that refer to plans and expectations for the second quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. 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 factors set forth below in the section entitled "Risk Factors" to be the important factors that could cause actual results to differ materially from the Corporation’s published expectations.
