Intel posts another record revenue year

SAN FRANCISCO--Intel Corp. Thursday (Jan. 19) reported yet another record financial year, with revenue of $54 billion, operating income of $17.5 billion, net income of $12.9 billion and earnings per share of $2.39. In 2010, Intel's revenue totaled just $43.6 billion, some 24 percent less than 2011.

Intel's annual sales improved by more than $10 billion from 2011, the second consecutive year that the chip giant has grown sales by more than 20 percent.

For the fourth quarter, Intel posted revenue of $13.9 billion, operating income of $4.6 billion, net income of $3.4 billion and EPS of 64 cents. The company said it had generated approximately $6.6 billion in cash from operations, paid dividends of $1.1 billion and used $4.1 billion to repurchase 174 million shares of stock.

First quarter revenue for 2012 is estimated at $12.8 billion, plus or minus $500 million, with gross margins at 63 percent. R&D spending in the first three months of the year is expected to reach $4.4 billion.

Intel said it would invest  between $12.1 billion and $12.9 billion in capital spending in 2012, up from about $10.5 billion in 2011.

Intel CEO Paul Otellini said his firm’s record performance was thanks to “outstanding execution,” and said he was excited about “growing opportunities” for Intel Ultrabooks, data centers, security and the introduction of Intel-powered smartphones and tablets.

An Intel spokesman added that the firm’s investments in emerging markets had paid off and would be even more critical to Intel’s success in 2012, with two out of every three incremental PCs now being shipped to those regions.

Intel’s server business was also up 17 percent in 2011, with the firm noting it was on track to double revenue from 2010 to 2015. Otellini put this down to the “mega trend” of the data explosion as the web continues to grow.

Otellini mentioned McAfee’s Deep Safe technology and integration of the Intel Mobile Communication’s XMM 6260 into its Atom smartphone reference platform as key strategies. The Intel chief also lauded the introduction and production of 22-nm tri-gate process, which he called “a breakthrough silicon technology” meant to increase performance on lower power.

Otellini also re-iterated Intel’s commitment to launch its new generation of Ivy Bridge processors in spring and said his firm would be ready with PCs and tablets running Windows 8 as soon as it launched.

Mentioning Intel’s recent partnership with Motorola Mobility and Chinese phone launch with Lenovo, Otellini said more mobile announcements could be expected in a month and a half – most likely at Mobile World Congress in Barcelona—and that Intel/Motorola phones would undergo certification this summer.