Intel fourth-quarter net income $2.3 billion, up 875 percent

SANTA CLARA, USA: Intel Corp. reported fourth-quarter revenue of $10.6 billion. The company reported operating income of $2.5 billion, net income of $2.3 billion and EPS of 40 cents.

For 2009 Intel posted revenue of $35.1 billion. The company reported full-year operating income of $5.7 billion, net income of $4.4 billion and EPS of 77 cents. The company generated more than $11 billion in cash from operations and paid cash dividends of $3.1 billion.

“Intel's strong 2009 results reflect our investment in industry-leading manufacturing and product innovation,” said Paul Otellini, Intel president and CEO.

“This strategy has enabled us to generate unprecedented operating efficiencies while growing our traditional businesses and creating exciting new market opportunities, even in difficult economic times. Our ability to weather this business cycle demonstrates that microprocessors are indispensable in our modern world. Looking forward, we plan to deliver the benefits of computing to an expanding set of products, markets and customers.”

Q4 2009 key financial information
* PC Client Group revenue up 10 percent, Data Center Group revenue up 21 percent, and Other Intel Architecture group revenue up 22 percent, Intel Atom microprocessor and chipset revenue up 6 percent, all sequentially.
* The average selling price (ASP) for microprocessors was up sequentially.
* R&D plus MG&A spending of $3.1 billion (excluding the $1.25 billion settlement agreement with AMD) was higher than the company’s expectation.
* The net gain of $96 million from equity investments and interest and other was better than the company’s expectation.
* The effective tax rate was 12 percent, versus the company’s revised expectation of 20 percent.

Full-year 2009 key financial information
* PC Client Group revenue down 6 percent, Data Center Group revenue down 2 percent, and Other Intel Architecture group revenue down 21 percent, Intel Atom microprocessor and chipset revenue up 167 percent.
* Gross margin of 55.7 percent, flat to 2008.
* EC fine of $1.45 billion and AMD settlement agreement of $1.25 billion.
* Full-year capital spending $4.5 billion, consistent with the company’s expectation.

Business outlook
Intel’s Business Outlook does not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed after Jan. 13.

Q1 2010
* Revenue: $9.7 billion, plus or minus $400 million.
* Gross margin percentage: 61 percent, plus or minus 2 percentage points.
* R&D plus MG&A spending: Approximately $3 billion.
* Amortization of acquisition-related intangibles and costs associated with the Wind River acquisition: Approximately $20 million.
* Impact of equity investments and interest and other: Gain of approximately $20 million.
* Depreciation: Approximately $1.1 billion.

Full-year 2010
* Gross margin percentage: 61 percent, plus or minus 3 percentage points.
* Spending (R&D plus MG&A): $11.8 billion, plus or minus $100 million.
* R&D spending: Approximately $6.2 billion.
* Tax rate: Approximately 30 percent.
* Depreciation: Approximately $4.4 billion, plus or minus $100 million.
* Capital spending: Expected to be $4.8 billion, plus or minus $100 million.