Intel Reports Record Annual And Quarterly Revenue
INTEL REPORTS RECORD ANNUAL AND QUARTERLY REVENUE AND EPS Q4 earnings excluding acquisition-related costs* US$0.69 per share, up 15% Q4 EPS US$0.61, up 3%
AUCKLAND, January 14, 2000 -- Intel Corporation announced today a fourth quarter revenue of US$8.2 billion, a new record, up 8 percent from the fourth quarter of 1998 and up 12 percent sequentially. Revenue for 1999 was US$29.4 billion, up 12 percent from 1998, and resulted in the company's thirteenth consecutive year of revenue growth. In addition, seasonally strong demand led to record unit shipments of microprocessors, chipsets, motherboards and flash memory.
For 1999, net income excluding acquisition-related costs was US$8.1 billion, up 29 percent from 1998 net income of US$6.3 billion. 1999 earnings excluding acquisition-related costs were US$2.33 per share, an increase of 30 percent from US$1.79 in 1998.
Including acquisition-related costs in accordance with generally accepted accounting principles, net income in 1999 was US$7.3 billion, up 21 percent from US$6.1 billion in 1998. 1999 earnings per share were US$2.11, up 22 percent from US
Acquisition-related costs in 1999 consisted of US$392 million in one-time charges for purchased in-process research and development and US$411 million of amortisation of goodwill and other acquisition-related intangibles.
For the fourth quarter, net income excluding acquisition-related costs was US$2.4 billion, up 15 percent from the fourth quarter of 1998 and up 26 percent sequentially. Fourth quarter earnings excluding acquisition-related costs were US$0.69 per share, an increase of 15 percent from US$0.60 in the fourth quarter of 1998, and up 25 percent sequentially.
Including acquisition-related costs in accordance with generally accepted accounting principles, fourth quarter net income was US$2.1 billion, up 2 percent from fourth quarter 1998 and up 45 percent sequentially. Earnings per share were US$0.61, up 3 percent from US$0.59 in the fourth quarter of 1998 and up 45 percent sequentially.
Acquisition-related costs in the fourth quarter consisted of US$59 million in one-time charges for purchased in-process research and development and US$241 million of amortisation of goodwill and other acquisition-related intangibles. "We are proud of our quarterly and annual records in both revenue and earnings," said Craig R. Barrett, president and chief executive officer. "Notably, these results were achieved as we extended our position as the key building block supplier to the worldwide Internet economy. We are also pleased that our 0.18-micron manufacturing process was our fastest ramping process ever."
"In 2000, we look forward to continued growth in our core microprocessor business, and to the mid-year production of our new Itanium(tm) processor which began sampling in the fourth quarter of last year. We are also excited about the expansion of our new Internet-related businesses," Barrett added. "This year we expect to grow revenues in our networking, communication and wireless businesses by 50 percent or more."
During the quarter Intel acquired DSP Communications, Inc., IPivot, Inc., Parity Software Development Corporation and the Telecom Component Products Division of Stanford Telecommunications, Inc. For the year, Intel acquired 12 companies and businesses for approximately US$6 billion, significantly broadening and strengthening the company's networking and communications businesses.
During the quarter, the company paid its quarterly cash dividend of US$0.03 per share. The dividend was paid on December 1, 1999, to stockholders of record on November 7, 1999. Intel has paid a regular quarterly cash dividend for over seven years.
During the quarter, the company repurchased a total of 12.5 million shares of common stock, at a cost of US$903 million, under an ongoing program. For the year, the company repurchased a total of 71.3 million shares at a total cost of US$4.6 billion. Since the program began in 1990, the company has repurchased 659.9 million shares at a total cost of US$18.2 billion. Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.
*Acquisition-related costs consist of one-time write-offs of purchased in-process research and development and the ongoing amortisation of goodwill and other acquisition-related intangibles. Other acquisition-related intangibles include, for example, the value of the acquired companies' developed technology, trademarks and workforce-in-place. Earnings excluding acquisition-related costs differ from earnings presented according to generally accepted accounting principles because they exclude these costs.
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