Intel Corporation

Recent Highlight

Recent Highlights

$54 Billion in Annual Revenue Up 24 Percent, $2.39 in Annual EPS Up 19 Percent

$18 Billion in Dividends, Buybacks Returned to Stockholders

SANTA CLARA, Calif., Jan. 19, 2012 – Intel Corporation today reported full-year revenue of $54 billion, operating income of $17.5 billion, net income of $12.9 billion and EPS of $2.39 -- all records. The company generated approximately $21 billion in cash from operations, paid dividends of $4.1 billion and used $14.1 billion to repurchase 642 million shares of stock.

For the fourth quarter, Intel posted revenue of $13.9 billion, operating income of $4.6 billion, net income of $3.4 billion and EPS of 64 cents. The company generated approximately $6.6 billion in cash from operations, paid dividends of $1.1 billion and used $4.1 billion to repurchase 174 million shares of stock.

"2011 was an exceptional year for Intel," said Paul Otellini, Intel president and CEO. "With outstanding execution the company performed superbly, growing revenue by more than $10 billion and eclipsing all annual revenue and earnings records. With a tremendous product and technology pipeline for 2012, we're excited about the global growth opportunities presented by Ultrabook systems, the data center, security and the introduction of Intel-powered smartphones and tablets."

Non-GAAP Financial Comparison
Annual
	2011	2010	vs. 2010
Revenue	$54.2 billion	$43.6 billion	up 24%
Gross Margin	63.6%	65.5%	down 1.9 pts.
Operating Income	$18.4 billion	$15.7 billion	up 18%
Net Income	$13.7 billion	$11.5 billion	up 19%
Earnings Per Share	$2.53	$2.02	up 25%

Non-GAAP results exclude certain acquisition accounting impacts and expenses related to acquisitions and the related income tax effects of these charges. Also, McAfee Inc. and Intel Mobile Communications contributed revenue of approximately $3.6 billion in 2011 and were not included in the results for 2010.

See the explanation of non-GAAP measures and the reconciliation to the most directly comparable GAAP financial measure.

GAAP Financial Comparison
Annual
	2011	2010	vs. 2010
Revenue	$54.0 billion	$43.6 billion	up 24%
Gross Margin	62.5%	65.3%	down 2.8 pts.
Operating Income	$17.5 billion	$15.6 billion	up 12%
Net Income	$12.9 billion	$11.5 billion	up 13%
Earnings Per Share	$2.39	$2.01	up 19%

Non-GAAP Financial Comparison
Quarterly
	Q4 2011	Q4 2010	vs. Q4 2010
Revenue	$13.9 billion	$11.5 billion	up 22%
Gross Margin	65.5%	64.8%	up 0.7 pts.
Operating Income	$4.8 billion	$4.0 billion	up 20%
Net Income	$3.5 billion	$3.2 billion	up 11%
Earnings Per Share	68 cents	56 cents	up 21%

Non-GAAP results exclude certain acquisition accounting impacts and expenses related to acquisitions and the related income tax effects of these charges. Also, McAfee Inc. and Intel Mobile Communications contributed revenue of approximately $1 billion in Q4 '11 and were not included in the results for Q4 '10.

See the explanation of non-GAAP measures and the reconciliation to the most directly comparable GAAP financial measure.

GAAP Financial Comparison
Quarterly
	Q4 2011	Q4 2010	vs. Q4 2010
Revenue	$13.9 billion	$11.5 billion	up 21%
Gross Margin	64.5%	64.6%	down 0.1 pts.
Operating Income	$4.6 billion	$4.0 billion	up 14%
Net Income	$3.4 billion	$3.2 billion	up 6%
Earnings Per Share	64 cents	56 cents	up 14%

Q4 and 2011 Key Financial Information (GAAP)

Q4 Business unit revenue:

PC Client Group revenue of $9 billion, up 17 percent year-over-year.
Data Center Group revenue of $2.7 billion, up 8 percent year-over-year.
Other Intel® architecture group revenue of $1.1 billion, up 35 percent year-over-year.
Intel® Atom™ microprocessor and chipset revenue of $167 million, down 57 percent year-over-year
McAfee Inc. and Intel Mobile Communications contributed revenue of approximately $1 billion.

Full Year Business unit revenue:

PC Client Group had revenue of $35.4 billion, up 17% from 2010.
Data Center Group had revenue of $10.1 billion, up 17% from 2010.
Other Intel architecture group had revenue of $5.0 billion, up 64% from 2010.
Intel Atom microprocessor and chipset revenue of $1.2 billion, down 25% from 2010.
McAfee Inc. and Intel Mobile Communications contributed revenue of $3.6 billion.