Intel Reports Record Annual Revenue And Eps
INTEL REPORTS RECORD ANNUAL REVENUE AND EPS
Earnings Excluding Acquisition-Related Costs* US$0. 38 per
Fourth Quarter Earnings Per Share US$0. 32
AUCKLAND, Jan. 18, 2001 -- Intel Corporation has
announced revenue for 2000 of US$33.7 billion, up 15 percent
from 1999, resulting in the company’s fourteenth consecutive
year of revenue growth. Fourth quarter revenue was US$8.7
billion, up 6 percent from the fourth quarter of 1999, and
approximately flat with the third quarter of 2000. Intel
Asia Pacific contributed 25% towards total Intel revenue for
the fourth quarter of 2000. This compares with 24% in the
fourth quarter of 1999 and 27% in the third quarter of
*Acquisition-related costs consist of one-time write-offs of purchased in-process research and development and the ongoing amortization of goodwill and other acquisition-related intangibles and costs. 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.
For 2000, net income excluding acquisition-related costs was US$12.1 billion, up 49 percent from US$8.1 billion in 1999. For 2000, earnings excluding acquisition-related costs were US$1.73 per share, an increase of 48 percent from US$1.17 in 1999.
Including acquisition-related costs in accordance with generally accepted accounting principles, net income in 2000 was US$10.5 billion, up 44 percent from US$7.3 billion in 1999. For 2000, earnings per share were US$1.51, up 44 percent from US$1.05 in 1999.
Acquisition-related costs in 2000 consisted of US$109 million in one-time charges for purchased in-process research and development and US$1.6 billion of amortization of goodwill and other acquisition-related intangibles and costs.
For the fourth quarter, net income excluding acquisition-related costs was US$2.6 billion, up 10 percent from the fourth quarter of 1999 and down 9 percent sequentially. Fourth quarter earnings excluding acquisition-related costs were US$0.38 per share, an increase of 12 percent from US$0.34 in the fourth quarter of 1999, and down 7 percent sequentially.
Including acquisition-related costs in accordance with generally accepted accounting principles, fourth quarter net income was US$2.2 billion, up 4 percent from fourth quarter 1999 and down 13 percent sequentially. Earnings per share were US$0.32, up 7 percent from $0.30 in the fourth quarter of 1999 and down 11 percent sequentially.
Acquisition-related costs in the fourth quarter consisted of US$18 million in one-time charges for purchased in-process research and development and US$459 million of amortization of goodwill and other acquisition-related intangibles and costs.
“This was a year of record annual revenue and earnings; yet, slowing economic conditions impacted fourth quarter growth and are causing near-term uncertainty,” said Craig R. Barrett, president and chief executive officer. “Looking forward, we are confident in our business strategy and competitive position," he continued. "Our financial strength enables us aggressively to increase our current investments in capital and R&D spending to ensure future leadership and readiness with 0.13-micron process manufacturing, 300 mm technology and a strong product portfolio."
During the quarter, the
company announced the acquisition of the consulting group of
Network Solutions Private Ltd. and closed the previously
announced acquisition of Ziatech
Corporation. In 2000, the company acquired 16 companies and businesses for over US$2.7 billion, primarily focused on expanding the company’s networking, communications and wireless businesses.
During the quarter, the company paid its quarterly cash dividend of US$0.02 per share. The dividend was paid on Dec. 1, 2000, to stockholders of record on Nov. 7, 2000. Intel has paid a regular quarterly cash dividend for over eight years.
During the quarter, the company repurchased a total of 22.8 million shares of common stock, at a cost of US$1.0 billion, under an ongoing program. For the year, the company repurchased a total of 73.5 million shares at a total cost of US$4.0 billion. Since the program began in 1990, the company has repurchased 1.4 billion shares at a total cost of US$22.2 billion.
For statements on business outlook, fourth quarter 2000 business review and recent highlights, please view http://www.intel.com/intel/finance/earnings.htm
This press release contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events. These statements AND all other statements that may be made on this call that are not historical facts, are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The reader is cautioned not to put undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to a number of uncertainties and other factors, many of which are outside the control of Intel and Xircom.