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* Revenue $10.1 Billion, up 15 Percent Year-over-Year
* Operating Income $2.2 Billion, up 64 Percent Year-over-Year
* Record Microprocessor, Chipset and Flash Unit Shipments
* Net Income $1.9 Billion
* EPS 31 Cents
Intel Corporation today announced third-quarter revenue of $10.1 billion, operating income of $2.2 billion, net income of $1.9 billion and earnings per share (EPS) of 31 cents.
“A combination of great products, strong and growing worldwide demand, and operational efficiency from our ongoing restructuring efforts led to record third-quarter revenue and a 64-percent year-over-year gain in operating income,” said Intel President and CEO Paul Otellini. “Looking forward, we see each of these elements continuing to improve into the fourth quarter. We are very pleased with the results and optimistic about our business.”
Financial Review
* Revenue of $10.1 billion was up 16 percent sequentially, primarily driven by growth in Mobility and Digital Enterprise Group processors of 14 percent, with related chipsets and other products up 19 percent.
-- Total microprocessor units set a record; the average selling price was flat.
-- Chipset and flash memory units set records.
-- Motherboard units were lower.
* Gross margin was 52.4 percent, up from 46.9 percent in the second quarter. The increase was primarily driven by higher microprocessor volumes, lower 45nm start-up costs and lower microprocessor unit costs, partially offset by write-offs for manufacturing costs related to upcoming 45nm processors that had not yet qualified for valuation during the quarter.
* Spending was $2.9 billion, higher than $2.6 billion in the second quarter, primarily driven by higher revenue- and profit-dependent expenses along with higher R&D spending as process engineers moved from 45nm start-up activities to 32nm development.
Business Outlook
The following expectations do not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed after Oct. 15.
Q4 2007 Outlook
* Revenue: Between $10.5 billion and $11.1 billion.
* Gross margin: 57 percent plus or minus a couple of points.
* Spending (R&D plus MG&A): Between $2.8 billion and $3.0 billion.
* Restructuring and asset impairment charges: Approximately $130 million.
* Net gains from equity investments and interest and other: Approximately $150 million.
* Tax rate: Approximately 29 percent, unchanged.
* Depreciation: Approximately $1.1 billion.
2007 Outlook
* Gross margin: 52 percent plus or minus a point, higher than the previous expectation of 51 percent plus or minus a few points.
* R&D: Approximately $5.8 billion, higher than the previous expectation of approximately $5.7 billion.
* MG&A: Approximately $5.3 billion, higher than the previous expectation of approximately $5.1 billion.
* Capital spending: $4.9 billion plus or minus $200 million, unchanged.
* Depreciation: $4.6 billion plus or minus $100 million, unchanged.
For more information: http://intc.com/