Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Intel Corporation - Q2 Earnings A Record


Q2 Earnings Excluding Acquisition-Related Costs* US$ 0.50 Per Share (US$ 1.00 Pre-Split) Q2 Earnings Per Share US$ 0.45, Post Split (US$ 0.90 Pre-Split)

All of the share and per share amounts in this release have been adjusted to reflect the 2:1 stock split (to be effected as a special stock distribution) payable July 30 to stockholders of record on July 2.

AUCKLAND, July 19, 2000 -- Intel Corporation today announced second quarter revenue of US$ 8.3 billion, a new quarterly record, up 23 percent from the second quarter of 1999 and 4 percent sequentially. The company also had record unit shipments of microprocessors and flash memory in the second quarter. Intel Asia Pacific contributed 26% towards total Intel revenue, fuelled by growth of the Internet economy, an increasing percentage of PCs being designed/manufactured in APAC and increased local PC consumption. This compares with 25% Q1 2000 and 22% Q2 99.

For the second quarter, net income excluding acquisition-related costs was US$ 3.5 billion, up 98 percent from the second quarter of 1999 and up 16 percent sequentially. Second quarter earnings excluding acquisition-related costs were US$ 0.50 per share, an increase of 92 percent from US$ 0.26 in the second quarter of 1999, and up 16 percent sequentially.

Including acquisition-related costs in accordance with generally accepted accounting principles, second quarter net income was US$ 3.1 billion, up 79 percent from the second quarter of 1999 and up 16 percent sequentially. Earnings per share were US$ 0.45, up 80 percent from US$ 0.25 in the second quarter of 1999 and up 15 percent sequentially.

Acquisition-related costs* in the second quarter consisted of US$ 21 million in one-time charges for purchased in-process research and development and US$ 394 million of amortisation of goodwill and other acquisition-related intangibles.

*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.

All of the share and per share amounts in this release have been adjusted to reflect the 2-for-1 stock split (to be effected as a special stock distribution) payable July 30 to stockholders of record on July 2. The company expects that its shares will begin to trade on a post-split basis on July 31. All second quarter net income and earnings per share amounts include the previously announced charge to cost of sales for approximately US$ 200 million to cover costs associated with the MTH motherboard replacement program and US$ 2.3 billion of interest and other income.

“We are very pleased with our record quarterly results in what is normally a seasonally slow quarter,” said Craig R. Barrett, president and chief executive officer. “Strong worldwide PC and server demand and better than expected manufacturing performance helped lead the company to greater than 20 percent revenue growth versus the second quarter of last year. We saw strong demand in all business groups, especially for microprocessors, flash memory and networking silicon.

“Looking forward, we expect to see strong demand continue into the second half. Our recent investments in 0.18-micron process technology will allow us to substantially increase second half supply to help us meet this anticipated strong demand.”

In June, the company announced the Intel® Pentium® 4 processor brand name for its new generation of desktop microprocessors. Scheduled to be introduced in the second half of 2000, the new Pentium 4 processor is based on revolutionary technology designed for consumers who want to take advantage of the latest Web technologies like broadband, interactive 3-D and streaming audio and video.

Today, the company said that it would soon begin shipments of its Intel® Itanium™ processor for systems used by IT end-users in pilot installations, and that the company now expects to begin recording revenue for Itanium processor shipments during the fourth quarter, rather than the third.

Pilot systems will be followed by release of generally available system hardware, operating systems environments, and application solutions, following industry practice for enterprise computing systems. Thousands of Itanium processor based development systems have already been shipped to OEM customers, operating systems vendors, independent software vendors, and IT end-users using them for the qualification of systems and development of software.

During the quarter, the company announced and closed the acquisition of Picazo Communications and Kuck & Associates, Inc. and closed two previously announced acquisitions, Basis Communications Corporation and Voice Technologies Group, Inc. During the quarter, Intel also announced that Visteon Corporation’s Ford Microelectronics Inc. design team had joined the company.

During the quarter, the company paid its quarterly cash dividend of US$ 0.015 per share (as calculated on a post-split basis). The dividend was paid on June 1, 2000, to stockholders of record on May 7, 2000. During the quarter, Intel’s Board of Directors approved an increase in the company's quarterly cash dividend from US$ 0.015 to US$ 0.02, beginning with the dividend payable on September 1, 2000, to stockholders of record on August 7, 2000. Intel has paid a regular quarterly cash dividend for over seven years. During the quarter, the company repurchased a total of 16.8 million shares (as calculated on a post-split basis), of common stock, at a cost of US$ 1.0 billion, under an ongoing program. Since the program began in 1990, the company has repurchased 1.4 billion shares at a total cost of US$ 20.2 billion.

**For further information on Intel’s business outlook, second quarter 2000 business review for Intel architecture group, wireless communications and computing group, network communications group, communications products group and financial review please view Intel Investor Relations Web site:**

- ENDS -

For more information please contact:
Stephanie Silvester, Intel Australia, Tel: (02) 9937 5886, Email:
Nimita Morarji , Botica Conroy, Tel: (09) 303 3862, 021 950058, Email:

© Scoop Media

Business Headlines | Sci-Tech Headlines


Workers “Blind-Sided”: Sanford Processing Restructure Plan

Up to 30 jobs – almost half Sanford’s Bluff workforce - could be lost if the proposal to move white-fish processing to Timaru goes ahead. More>>

up arrow"Steady": GDP Up 0.6 Percent In March Quarter

“Construction was the main contributor to GDP growth this quarter, rising 3.7 percent, on top of a 2.2 percent increase in the previous quarter,” national accounts senior manager Gary Dunnet said. More>>


Gordon Campbell: On Our Wild West Banking Culture

David Hisco’s nine year stint as CEO of the ANZ bank (while his expense claim eccentricities went by unbothered by board oversight) has been a weird echo of the nine years of social neglect by the previous National government... More>>


Privacy & Regulation Issues: Hopes Facebook Currency Will Speed Pacific Transfers

A Tongan community leader is hopeful Facebook's planned digital currency will help end long wait times for money being transferred between New Zealand and the Pacific Islands. More>>

Oil Exploration: Chevron, Equinor Depart NZ

Chevron and Norwegian oil giant Equinor have opted to abandon their joint exploration efforts off the east coast of the North Island... Chevron said the decision not to proceed with the next five-year stage of their work programmes was based on the firms’ broader portfolio considerations and not “policy or regulatory concerns.” More>>