For the final quarter of 2012, chip giant Intel reports net income of $2.5 billion (48 cents EPS) on a revenue of $13.5 billion. Compared to the same quarter a year ago, revenue was down 3 percent while profit was down a whopping 27 percent. For the entire year, Intel posted a revenue of $53.3 billion, down 1.2 percent versus last year's $54.0 billion, and net income of $11.0 billion, down 15 percent from 2011's $12.9 billion.
The struggling PC market is to blame for the lackluster results, these days there's an increased focus on smartphones and tablets and Intel has very little marketshare in these markets.
For the current quarter, Intel expects to see a revenue of $12.7 billion, plus or minus $500 million, in-line with seasonal trends.
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."