Generates $21 Billion in Cash from Operations
Reports Fourth-Quarter Revenue of $13.8 Billion
For the fourth quarter, Intel posted revenue of $13.8 billion, operating income of $3.5 billion, net income of $2.6 billion, and EPS of 51 cents. The company generated approximately $6.2 billion in cash from operations, paid dividends of $1.1 billion, and used $528 million to repurchase 22 million shares of stock.
“We had a solid fourth quarter with signs of stabilization in the PC segment and financial growth from a year ago,” said Intel CEO Brian Krzanich. “We’ve built a strong foundation for our business by bringing innovation to the market more quickly across a wide range of computing platforms. For example, at CES, we demonstrated multiple devices that weren’t on our roadmap six months ago.”
Full-Year 2013 Key Financial Information and Business Unit Trends
- PC Client Group revenue of $33.0 billion, down 4 percent from 2012.
- Data Center Group revenue of $11.2 billion, up 7 percent from 2012.
- Other Intel architecture operating segments revenue of $4.1 billion, down 7 percent from 2012.
Q4 Key Financial Information and Business Unit Trends
- PC Client Group revenue of $8.6 billion, up 2 percent sequentially and flat year-over-year.
- Data Center Group revenue of $3.0 billion, up 3 percent sequentially and up 8 percent year-over-year.
- Other Intel® architecture operating segments revenue of $1.1 billion, up 4 percent sequentially and up 9 percent year-over-year.
- Gross margin of 62.0 percent, 1 percentage point above the midpoint of the company’s prior expectation of 61 percent.
- R&D plus MG&A spending of $4.8 billion, slightly above the company’s prior expectation of approximately $4.7 billion.
- Tax rate of 26 percent versus the company’s prior expectation of 25 percent.
Financial Comparison Annual 2013 2012 vs. 2012 Revenue $52.7 billion $53.3 billion down 1% Gross Margin 59.8% 62.1% down 2.3 pts. Operating Income $12.3 billion $14.6 billion down 16% Net Income $9.6 billion $11.0 billion down 13% Earnings Per Share $1.89 $2.13 down 11%
Financial Comparison Quarterly Q4 2013 Q4 2012 vs. Q4 2012 Revenue $13.8 billion $13.5 billion up 3% Gross Margin 62.0% 58.0% up 4.0 pts. Operating Income $3.5 billion $3.2 billion up 12% Net Income $2.6 billion $2.5 billion up 6% Earnings Per Share 51 cents 48 cents up 6%
Intel’s Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures or other investments that may be completed after January 16.
- Revenue: approximately flat.
- Gross margin percentage: 60 percent, plus or minus a few percentage points.
- R&D plus MG&A spending: approximately $18.6 billion.
- Amortization of acquisition-related intangibles: approximately $300 million.
- Depreciation: approximately $7.4 billion.
- Tax rate: approximately 27 percent.
- Full-year capital spending: $11.0 billion, plus or minus $500 million.
- Revenue: $12.8 billion, plus or minus $500 million.
- Gross margin percentage: 59 percent, plus or minus a couple of percentage points.
- R&D plus MG&A spending: approximately $4.8 billion.
- Restructuring and asset impairment charges: approximately $200 million.
- Amortization of acquisition-related intangibles: approximately $70 million.
- Impact of equity investments and interest and other: approximately $25 million.
- Depreciation: approximately $1.7 billion.
For additional information regarding Intel’s results and Business Outlook, please see the CFO commentary at: www.intc.com/results.cfm.
Status of Business Outlook
Intel’s Business Outlook is posted on intc.com and may be reiterated in public or private meetings with investors and others. The Business Outlook will be effective through the close of business on March 14 unless earlier updated; except that the Business Outlook for amortization of acquisition-related intangibles, impact of equity investments and interest and other, restructuring and asset impairment charges and tax rate, will be effective only through the close of business on January 23. Intel’s Quiet Period will start from the close of business on March 14 until publication of the company’s first-quarter earnings release, scheduled for April 15, 2014. During the Quiet Period, all of the Business Outlook and other forward-looking statements disclosed in the company’s news releases and filings with the SEC should be considered as historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.