SANTA CLARA, Calif. " Intel Corp. reported first quarter revenue of $8.1 billion, down 7 percent sequentially and up 20 percent year-over-year.
First quarter net income was $1.7 billion, down 20 percent sequentially and up 89 percent year-over-year. Earnings per share were 26 cents, down 21 percent sequentially and up 86 percent from 14 cents in the first quarter of 2003.
On March 30, Intel and Intergraph Corp. announced a settlement agreement that resolves all of the remaining issues in a patent infringement case and provides certain rights for Intel customers. Under the agreement, Intel will pay $225 million to Intergraph.
Intel recorded a $162 million charge to first quarter cost of sales, which reduced earnings per share by approximately 1.7 cents.
"Intel's first quarter results showed healthy growth in both revenue and earnings compared to a year ago, led by improvement in worldwide IT spending," Craig Barrett, Intel chief executive officer. "We ramped our 90-nm process into high volume with the launch of several new desktop processors and plan to substantially increase shipments in the second quarter including our first mobile and server products."
Revenue in the second quarter is expected to be between $7.6 billion and $8.2 billion. The R&D spending expectation for 2004 is unchanged at approximately $4.8 billion. The capital spending expectation for 2004 is unchanged at between $3.6 billion and $4 billion.