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To: Captain Jack who wrote (90719)	4/17/2001 4:24:16 PM
From: tonyt	Read Replies (1) \| Respond to of 97611

Intel Reports First Quarter Revenue of $6.7 Billion 4/17/2001 4:16:00 PM SANTA CLARA, Calif., Apr 17, 2001 (BUSINESS WIRE) -- -- Intel Investor Relations Web site: www.intc.com -- Q1 earnings announcement call live on Web site at 2:30 p.m. PDT -- Conference call replay number 719/457-0820; access No. 601126 -- Replay available shortly after end of conference call through April 24 Intel Corporation today announced first quarter revenue of $6.7 billion, down 16 percent from the first quarter of 2000 and down 23 percent sequentially. For the first quarter, net income, excluding acquisition-related costs, was $1.1 billion, down 64 percent from the first quarter of 2000 and down 58 percent sequentially. First quarter earnings, excluding acquisition-related costs, were $0.16 per share, a decrease of 63 percent from $0.43 in the first quarter of 2000 and down 58 percent sequentially. Last year's first quarter earnings per share includes a reversal of previously accrued taxes that reduced that quarter's tax provision by $600 million, and improved first quarter 2000 results by $0.09 per share. The reversal was related to the company's previous announcement that the Internal Revenue Service had closed its examination of the its tax returns up to and including 1998. Including acquisition-related costs, in accordance with generally accepted accounting principles, first quarter net income was $485 million, down 82 percent from first quarter of 2000 and down 78 percent sequentially. Earnings per share were $0.07, down 82 percent from $0.39 in the first quarter of 2000 and down 78 percent sequentially. Acquisition-related costs in the first quarter consisted of $75 million in one-time charges for purchased in-process research and development and $585 million of amortization and write-offs of goodwill and other acquisition-related intangibles and costs. "Our microprocessor business appears to have stabilized and we expect to see normal seasonal patterns going forward from our current business level," said Craig R. Barrett, president and chief executive officer. "In our communications businesses, we are experiencing continued softness. Looking beyond the current environment, we believe our aggressive investment in new manufacturing technologies and the development of cost-competitive, leading-edge products is the winning strategy." During the quarter, the company announced and completed the acquisitions of Xircom Inc. and ICP Vortex Computersysteme GmbH, and announced the acquisition of VxTel Inc. Background on acquisitions can be found in the first quarter highlights section of this release. During the quarter, the company paid its quarterly cash dividend of $0.02 per share. The dividend was paid on March 1, 2001, to stockholders of record on Feb. 7, 2001. Intel has paid a regular quarterly cash dividend for more than eight years. During the quarter, the company repurchased a total of 29.4 million shares of common stock, at a cost of $1.0 billion, under an ongoing program. Since the program began in 1990, the company has repurchased 1.4 billion shares at a total cost of $23.2 billion. BUSINESS OUTLOOK The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions or other business combinations that may be completed after March 31, 2001. Beginning this quarter, Intel will have a mid-quarter Business Update to the Outlook provided below. This quarter's Business Update is scheduled for June 7. Continuing uncertainty in global economic conditions make it particularly difficult to predict product demand and other related matters.