In an accounting statement filed with its annual report, Intel Corp. listed its 1998 revenue on the basis of certain productsegments, as required by new SEC regulations. For 1998, Intel reported an operating
profit of $8.38 billion on revenue of $26.8 billion.
Intel's revenue and profit are broken down in the report on the basis of three categories: the Intel
Architecture Business Group, representing its desktop, mobile, and workstation/server
microprocessors; the Computing Enhancement Group, consisting of Intel's chipsets,
embedded microprocessors and microcontrollers, flash memory, and flash memory
products; and "All Other," consisting of Intel's Network Communications Group and the New Business Group.
For 1998, Intel's Architecture Business Group returned $9.08 billion in net income on revenue of $21.5
billion. The Computing Enhancement Group reported only $358 million
in profits on revenue of $4.05 billion. The "All Other" category, which makes up Intel's
networking products, videoconferencing terminals, help-desk software, and
digital camera manufacturing kits, showed an operating loss of $1.06 billion on revenue of $681 million.
Intel's accounting report also shows that the Santa Clara, Calif., company is aligning itself more with strategic customers. In
1998, one customer accounted for 13% of Intel's revenue and another
accounted for 11%. In 1997, only a single customer accounted for more than 10% of
Intel's revenue, while in 1996 no customer exceeded 10% .