Intel scores revenue record
Published: 15 Jan 2004 16:05 GMT
Intel has reported record revenue and a fourth-quarter profit that exceeded analysts' expectations despite a $611m charge.
The chipmaker on Wednesday reported a profit of $2.2bn (£1.2bn), or 33 cents per share, for the quarter. Revenue for the period, which ended on 27 December, was $8.74bn, slightly higher than a previous record of $8.73bn set during the third quarter of 2000.
For all of 2003, Intel reported revenue of $30.1bn, up 13 percent from $26.8bn in 2002. Earnings per share were 85 cents, up 85 percent from 46 cents in 2002.
On average, 34 analysts surveyed by Thomson First Call expected the company to show a quarterly per share profit of 25 cents on revenue of $8.65bn. Intel had forecast revenue of between $8.5bn and $8.7bn for the quarter. Typically, analysts use the midpoint of the company's quarterly revenue guidance to formulate their estimates.
Included in Intel's fourth-quarter earnings was a $611m, or 9 cents per share, charge for the impairment of goodwill from acquisitions and a $620m, or 9 cents per share, tax benefit from divestitures.
During the same period one year ago, Intel reported a profit of $1bn, or 16 cents per share, on revenue of $7.16bn.
The fourth-quarter performance was fuelled by the chipmaker's Intel Architecture Group, which produces PC processors and related products. The group saw record shipments and higher average prices, partly a result of increased sales of server chips.
"We ended the year on a high note as ongoing strength in emerging markets coupled with improving demand in established markets drove revenue to record levels," Intel chief executive Craig Barrett said in a statement.
Looking ahead, the company expects to earn between $7.9 and $8.5bn in the first quarter of 2004. Intel will spend between $3.6bn and $4bn on capital improvements, such as buying new manufacturing equipment. It spent $3.7bn in 2003.
Intel also said it will spend $4.8bn on research and development, compared with $4.4bn in 2003, as it engineers another new chip manufacturing process.
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