Intel Ends Year on Record Note

By Mark Hachman  |  Posted 2005-01-11
Intel Corp. reported record revenue for the fourth quarter of 2004, capping off the year with additional records in sales of microprocessors and chip sets.

Intel on Tuesday reported net income of $2.1 billion on sales of $9.6 billion for the fourth quarter. While net income dipped 2.1 percent compared with a year ago, the companys revenue climbed by about 10 percent. For the year, Intel reported net income of $7.5 billion on sales of $34.2 billion, up 33 percent and 13.5 percent, respectively, from a year ago.

The numbers also revealed that Intel has fully recovered from the industry downturn that followed the late 90s dot-com boom. Intels previous record for revenue was set in 2000, when the company recorded sales of $33.7 billion.

Unit sales of microprocessors, chip sets, motherboards and Wi-Fi components all set records; wired Ethernet units and flash units also rose, although not to peak levels.

Intels 2005 plans include the introduction of its first dual-core processors for servers, desktops and notebooks, which initially will be targeted at the high-end enthusiast customer, according to Intel president and chief operating officer Paul Otellini, who spoke in a conference call with analysts Tuesday afternoon.

Intel also plans to announce the next generation of its Centrino platform, code-named "Sonoma," next week.

Otellini hinted that the company will orient its 2005 product line around the digital office and the digital home, anticipated to be part of a year of "solid growth" for Intel that will build on its 2004 successes. In 2004, all of Intels business units experienced double-digit growth, Intel chief financial officer Andy Bryant reported.

Revenue in Intels core Intel Architecture group increased 7 percent from a year ago to $7.1 billion. Microprocessor sales increased by 12 percent for the full year, Bryant said. Intels chip-set business gained market share, Otellini added.

The coming year also will see Intel increase spending. R&D spending for 2005 is expected to be about $5.2 billion, the highest in the companys history, versus $4.8 billion in 2004. Meanwhile, capital spending for 2005 is expected to be between $4.9 billion and $5.3 billion, versus $3.8 billion in 2004.

Read the full story on ExtremeTech: Intel Ends Year on Record Note

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