Yup. Like clockwork. One would think a company like this would get a better handle on their estimates. Yeah, right. Estimates were for 43 cents I believe.
Intel Fourth-Quarter Revenue $10.2 Billion
Tuesday January 17, 4:15 pm ET
EPS 40 Cents
Record Quarterly and Annual Revenue and Operating Income
Record Quarterly Unit Shipments of Mobile, Desktop and Server Microprocessors
SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 17, 2006--Intel Corporation today announced fourth-quarter revenue of $10.2 billion, operating income of $3.3 billion, net income of $2.5 billion and earnings per share (EPS) of 40 cents. Revenue was below the company's updated expectation of $10.4 billion to $10.6 billion primarily due to lower than expected desktop processor unit shipments and prices.
"2005 was our third consecutive year of double-digit revenue and earnings growth, leading to the best operating results in the company's history," said Intel President and CEO Paul Otellini. "Although we fell below our expectations for the fourth quarter, we enter 2006 with exciting new products like the Intel® Core(TM) Duo and Viiv(TM). Our industry-leading 65nm process technology is ramping dual-core processors into high volume with an expected crossover in performance segments by mid-year. We expect 2006 will be another year of growth for Intel as we ramp platforms for notebooks, the digital home, the digital office and emerging markets."
Q4 2005 vs. Q3 2005 vs. Q4 2004
------------------- ------------------ --------------- ---------------
Revenue $10.2 billion +2% +6%
Operating Income $3.3 billion +7% +14%
Net Income $2.5 billion +23% +16%
EPS 40 cents +25% +21%
------------------- ------------------ --------------- ---------------
Note: Results for the third quarter of 2005 included a tax item and
legal settlement that together lowered EPS by 6 cents.
For 2005, Intel achieved record revenue of $38.8 billion, record operating income of $12.1 billion, net income of $8.7 billion and EPS of $1.40. Intel paid record cash dividends of nearly $2 billion and used a record $10.6 billion to repurchase 418.4 million shares of common stock.
2005 2004 Change
------------------- ------------------ --------------- ---------------
Revenue $38.8 billion $34.2 billion + 13.5%
Operating Income $12.1 billion $10.1 billion + 19%
Net Income $8.7 billion $7.5 billion + 15%
EPS $1.40 $1.16 + 21%
Financial Review
Fourth-quarter gross margin was 61.8 percent, slightly below the company's updated expectation of 63 percent, plus or minus a point, primarily due to lower than expected revenue, a slight shift in the overall product mix to non-microprocessor products, and some inventory valuation adjustments to reflect lower unit costs. The effective tax rate of 29.1 percent was below the expected rate of 31 percent primarily due to tax benefits for export sales and estimated R&D tax credits. |
