Intel announced a first-quarter revenue of $12.9 billion and net income of $3.3 billion, or 59 cents per share. Analysts anticipated the chip giant would announce earnings per share of just 46 cents, but the company did much better thanks to outstanding growth in every major product segment across all regions.
Non GAAP Results
Revenue $12.9 billion, up $2.6 billion, 25 percent year-over-year
Gross margin of 62 percent, down 1 percentage point year-over-year
Operating income $4.3 billion, up $862 million, 25 percent year-over-year
Net income $3.3 billion, up $830 million, 34 percent year-over-year
EPS 59 cents, up 16 cents, 37 percent year-over-year
Revenue $12.8 billion, up $2.5 billion, 25 percent year-over-year
Gross margin of 61 percent, down 2 percentage points year-over-year
Operating income $4.2 billion, up $710 million, 21 percent year-over-year
Net income $3.2 billion, up $718 million, 29 percent year-over-year
EPS 56 cents, up 13 cents, 30 percent year-over-year
SANTA CLARA, Calif., April 19, 2011 – Intel Corporation today reported record EPS and revenue on both a GAAP and non-GAAP basis.
On a non-GAAP basis, revenue was $12.9 billion, operating income was $4.3 billion, net income was $3.3 billion, and EPS was 59 cents. On a GAAP basis, the company reported first-quarter revenue of $12.8 billion, operating income of $4.2 billion, net income of $3.2 billion, and EPS of 56 cents.
The company generated approximately $4.0 billion in cash from operations, paid cash dividends of $994 million, and used $4.0 billion to repurchase 189 million shares of common stock.
“The first-quarter revenue was an all-time record for Intel fueled by double digit annual revenue growth in every major product segment and across all geographies,” said Paul Otellini, Intel president and CEO. “These outstanding results, combined with our guidance for the second quarter, position us to achieve greater than 20 percent annual revenue growth.”
Q1 2011 Key Financial Information (GAAP)
PC Client Group revenue up 17 percent, Data Center Group revenue up 32 percent, other Intel architecture group revenue up 70 percent, and Intel® Atom™ microprocessor and chipset revenue of $370 million up 4 percent, all year-over-year.
The average selling price (ASP) for microprocessors was up sequentially.
Gross margin was 61 percent.
R&D plus MG&A spending of $3.7 billion, slightly higher than the company’s expectation.
The net gain of $213 million from equity investments and interest and other, consistent with the company’s expectation.
The effective tax rate was 28 percent, in-line with the company’s outlook of 29 percent.
The company used $4.0 billion to repurchase 189 million shares of common stock.
During the quarter, the company closed the acquisitions of Infineon Wireless Solutions and McAfee, Inc. The combination of both acquisitions contributed revenue of $496 million.
The first quarter of 2011 had 14 weeks of business versus the typical 13 weeks, as the company realigned its fiscal year with the calendar year.
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 19.
Q2 2011 (GAAP, unless otherwise stated)
Revenue: $12.8 billion, plus or minus $500 million.
Non-GAAP revenue: Excluding certain acquisition related accounting impacts, the revenue forecast is $12.85 billion, plus or minus $500 million.
Gross margin percentage: 61 percent, plus or minus a couple percentage points.
Non-GAAP gross margin: Excluding certain accounting impacts and expenses related to acquisitions, the gross margin forecast is 62 percent plus or minus a couple percentage points.
R&D plus MG&A spending: approximately $3.9 billion.
Amortization of acquisition related intangibles: approximately $75 million.
Impact of equity investments and interest and other: gain of approximately $50 million.
Depreciation: approximately $1.2 billion.
Full-Year 2011 (GAAP, unless otherwise stated)
Gross margin percentage: 63 percent, plus or minus a few percentage points.
Non-GAAP gross margin: excluding certain accounting impacts and expenses related to acquisitions, the gross margin forecast is 64% plus or minus a few points.
Spending (R&D plus MG&A): $15.7 billion, plus or minus $200 million.
Amortization of acquisition related intangibles: approximately $260 million.
Tax rate: approximately 29 percent for the second, third and fourth quarters.
Depreciation: $5 billion, plus or minus $100 million.
Capital spending: $10.2 billion, plus or minus $400 million.
2011 will have 53 weeks of business versus the typical 52 weeks, as the company realigns its fiscal year with the calendar year.