Intel Changes Financial Reporting Structure To Reflect Recent Acquisitions
SANTA CLARA, Calif.--(BUSINESS WIRE)-- Beginning with the publication of Intel's first-quarter earnings report on Tuesday, April 19, the company will revise the presentation of its financial results to reflect the recently closed acquisitions of Infineon Wireless Solutions and McAfee, Inc. Infineon Wireless Solutions will now operate as Intel Mobile Communications. The company is providing this detail now in order to give visibility into the new reporting model.
Operating groups shown below are comprised of the following:
-- PC Client Group: Delivering microprocessors and related chipsets and
motherboards designed for the notebook and desktop (including high-end
enthusiast PCs) market segments; and wireless connectivity products.
-- Data Center Group: Delivering microprocessors and related chipsets and
motherboards designed for the server, workstation, and storage computing
market segments; and wired network connectivity products.
-- Other Intel Architecture Group consists of the following:
o Intel Mobile Communications: Delivering mobile phone components such
as baseband processors, radio frequency transceivers, and power
management chips.
o Embedded and Communications Group: Delivering microprocessors and
related chipsets for embedded applications.
o Netbook and Tablet Group: Delivering microprocessors and related
chipsets for the netbook and tablet market segments.
o Digital Home Group:Delivering Intel architecture-based products for
next-generation consumer electronics devices.
o Ultra-Mobility Group: Delivering low-power Intel architecture-based
products in the next-generation handheld market segment.
-- Software and Services Group consists of the following:
o McAfee: A wholly owned subsidiary delivering software products for
endpoint security, system security, consumer security, network
security, and risk and compliance.
o Wind River Software Group: A wholly owned subsidiary delivering device
software optimization products to the embedded and handheld market
segments, serving a variety of hardware architectures.
o Software and Services Group: Delivering software products and services
that promote Intel Architecture as the platform of choice for software
development.
-- All Otherconsists of the following:
o Non-Volatile Memory Solutions Group: Delivering advanced NAND flash
memory products for use in a variety of devices.
o Corporate: Revenue, expenses and charges such as:
# A portion of profit-dependent compensation and other expenses not
allocated to the operating groups.
# Divested businesses and the results of seed businesses that support
our initiatives.
# Acquisition-related costs, including amortization and any impairment
of acquisition-related intangibles and goodwill.
SUPPLEMENTAL OPERATING GROUP RESULTS
Three Months Ended
Q1 2011 Q4 2010 Q1 2010
Net Revenue
PC Client Group
Microprocessor revenue
Chipset, motherboard and other revenue
Data Center Group
Microprocessor revenue
Chipset, motherboard and other revenue
Other Intel architecture group
Intel architecture group revenue
Software and services group revenue
All other
TOTAL NET REVENUE
Operating income (loss)
PC Client Group
Data Center Group
Other Intel architecture group
Intel architecture group operating income
Software and services group operating income
All other
TOTAL OPERATING INCOME
The company will also provide non-GAAP financial measures that exclude certain accounting impacts primarily associated with the acquisition of McAfee, Inc. and Infineon Wireless Solutions, as follows:
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
Three Months Ended
April 2, Dec. 25 March 27,
2011 2010 2010
GAAP NET REVENUE
Adjustment for deferred revenue write-down
NON-GAAP NET REVENUE
GAAP GROSS MARGIN
Adjustment for:
Deferred revenue write-down and associated costs
Amortization of acquisition related intangibles
Inventory valuation
NON-GAAP GROSS MARGIN
GAAP GROSS MARGIN PERCENTAGE
Adjustment for:
Deferred revenue write-down and associated costs
Amortization of acquisition related intangibles
Inventory valuation
NON-GAAP GROSS MARGIN PERCENTAGE
GAAP OPERATING INCOME
Adjustment for:
Deferred revenue write-down and associated costs
Amortization of acquisition related intangibles
Inventory valuation
NON-GAAP OPERATING INCOME
GAAP NET INCOME
Adjustment for:
Deferred revenue write-down and associated costs
Amortization of acquisition related intangibles
Inventory valuation
Income tax effect
NON-GAAP NET INCOME
GAAP DILUTED EARNINGS PER COMMON SHARE
Adjustment for:
Deferred revenue write-down and associated costs
Amortization of acquisition related intangibles
Inventory valuation
Income tax effect
NON-GAAP DILUTED EARNINGS PER COMMON SHARE
Earnings Webcast
Intel plans to report its earnings for the first quarter of 2011 on Tuesday, April 19, 2011. Immediately following the earnings report, the company plans to publish a commentary by Stacy J. Smith, vice president and chief financial officer at www.intc.com/results.cfm. A public webcast of Intel's earnings conference call will follow at 2:30 p.m. PST at www.intc.com.
Intel (NASDAQ:INTC), the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom and blogs.intel.com
Intel, the Intel logo, and Intel Atom are trademarks of Intel Corporation in the United States and other countries.
* Other names and brands may be claimed as the property of others.
Source: Intel Corporation
Released Apr 13, 2011 • 5:00 PM EDT