Intel Reports Fourth-Quarter and Annual Results

Intel Corporation today reported fourth-quarter revenue of $8.2 billion, operating income of $1.5 billion, net income of $234 million and earnings per share (EPS) of 4 cents. The results included a billion-dollar negative impact from the previously announced reduction in the carrying value of the company's Clearwire investments.

• Fourth-Quarter Revenue $8.2 Billion, down 19 Percent Sequentially
• Gross Margin 53 Percent, down 6 Points Sequentially
• Operating Income $1.5 Billion, down 50 Percent Sequentially
• Quarterly Net Income $234 Million; EPS 4 Cents
• 2008 Revenue $37.6 Billion, down 2 Percent Year-over-Year or up Slightly Adjusted for Divestitures
• Gross Margin 55 Percent, up 3.5 Points Year-over-Year
• Operating Income $9 Billion, up 9 Percent Year-over-Year
• Annual Net Income $5.3 Billion; EPS 92 Cents

For 2008, Intel posted revenue of $37.6 billion, operating income of $9 billion, net income of $5.3 billion and EPS of 92 cents. Intel generated approximately $11 billion in cash from operations, paid cash dividends of $3.1 billion and used $7.1 billion to repurchase 324 million shares of common stock.

"The economy and the industry are in the process of resetting to a new baseline from which growth will resume," said Paul Otellini, Intel president and CEO. "While the environment is uncertain, our fundamental business strategies are more focused than ever. Intel will continue to extend its manufacturing leadership, drive product innovation, develop new markets and implement operating efficiencies that have already taken more than $3 billion out of our ongoing cost structure since 2006. Intel has weathered difficult times in the past, and we know what needs to be done to drive our success moving forward. Our new technologies and new products will help us ignite market growth and thrive when the economy recovers."