Intel Corporation today announced first quarter revenue of $8.1 billion, down 7 percent sequentially and up 20 percent year-over-year.
First quarter net income was $1.7 billion, down 20 percent sequentially and up 89 percent year-over-year. Earnings per share were 26 cents, down 21 percent sequentially and up 86 percent from 14 cents in the first quarter of 2003.
"Intel's first quarter results showed healthy growth in both revenue and earnings compared to a year ago, led by improvement in worldwide IT spending," said Craig R. Barrett, Intel chief executive officer. "We ramped our 90 nm process into high volume with the launch of several new desktop processors, and plan to substantially increase shipments in the second quarter including our first mobile and server products. The combination of these products plus new processors and platform innovations coming over the course of this year positions us well for continued growth."
On March 30, Intel and Intergraph Corporation announced a settlement agreement that resolves all of the remaining issues in a patent infringement case and provides certain rights for Intel customers. Under the agreement, Intel will pay $225 million to Intergraph. Intel recorded a $162-million charge to first quarter cost of sales, which reduced earnings per share by approximately 1.7 cents. The remaining $63 million represents the value of intellectual property assets, which will be amortized over approximately five years.