Carl, Article... Intel breaks down product revenue....
April 6, 1999
ELECTRONIC ENGINEERING TIMES : Santa Clara, Calif. - Intel Corp.'s heavy dependence on microprocessors and on a few major customers is evidenced in an accounting statement filed with its annual report for 1998, when the company reported an operating profit of $8.38 billion on revenue of $26.8 billion.
The report breaks down Intel's revenue and profit into three product categories. The Intel Architecture Business Group, which sells microprocessors for desktop, mobile and workstation/server systems, returned $9.08 billion in profit and $21.5 billion in revenue. The Computing Enhancement Group, which sells chip sets, embedded processors, controllers and flash-memory products, generated $358 million in profit on revenue of $4.05 billion. All other products, including networking products, videoconferencing terminals and digital-camera manufacturing kits, generated an operating loss of $1.06 billion on revenue of $681 million.
Intel's accounting shows the company's alignment with strategic customers. In 1998, one customer accounted for 13 percent of revenue and another for 11 percent. In 1997, only a single customer accounted for more than 10 percent of the company's revenue, while in 1996 no customer exceeded 10 percent of Intel's revenue.
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