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2007 Operating Income $8.2 Billion, up 45 Percent
-- Fourth-Quarter Revenue $10.7 Billion, up 10.5 Percent Year-over-Year
-- Gross Margin 58 Percent, up 8.5 Points Year-over-Year
-- Operating Income $3 Billion, up 105 Percent Year-over-Year
-- Record Microprocessor and Chipset Units and Revenue
-- Net Income $2.3 Billion; EPS 38 Cents
Intel Corporation announced record fourth-quarter revenue of $10.7 billion, operating income of $3 billion, net income of $2.3 billion and earnings per share (EPS) of 38 cents. For 2007, operating income grew 45 percent, reflecting the company’s ongoing efficiency programs, with profits growing significantly faster than revenue.
“2007 was a breakthrough year for innovation at Intel,” said Paul Otellini, Intel president and CEO. “We realized the benefits of our investments in new products and our efforts to drive efficiencies. Our customers embraced the Intel® Core™ microarchitecture, extending our competitive leadership and driving a significant gain in operating results. We enter 2008 with the best combination of products, silicon technology and manufacturing leadership in our history.”
Business Outlook
Intel’s Business Outlook for the first quarter of 2008 does not include the potential impact of mergers, acquisitions, divestitures or other business combinations that may be completed after Jan. 14. Intel’s Business Outlook for the full year reflects the expectation that the Numonyx transaction will close during the first quarter.
Q1 2008 Outlook
* Revenue: Between $9.4 billion and $10 billion.
* Gross margin: 56 percent plus or minus a couple of points.
* Spending (R&D plus MG&A): Between $2.8 billion and $2.9 billion.
* Restructuring and asset impairment charges: Approximately $100 million.
* Net gains from equity investments and interest and other: Approximately $175 million.
* Tax rate: Approximately 31 percent.
* Depreciation: Approximately $1.1 billion.
2008 Outlook
* Gross margin: 57 percent plus or minus a few points.
* R&D: Approximately $5.9 billion.
* MG&A: Approximately $5.5 billion.
* Capital spending: $5.2 billion plus or minus $200 million.
* Tax rate: Approximately 31 percent.
* Depreciation: $4.4 billion plus or minus $100 million.
Additional information about Intel is available at www.intel.com/.