Intel Ends Year on Record Note
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.
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.
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