Intel Reports Third-Quarter Revenue of $13.5 Billion

SANTA CLARA, Calif. — (BUSINESS WIRE) — October 16, 2012 — Intel Corporation today reported quarterly revenue of $13.5 billion, operating income of $3.8 billion, net income of $3.0 billion and EPS of $0.58. The company generated approximately $5.1 billion in cash from operations, paid dividends of $1.1 billion and used $1.2 billion to repurchase stock.

"Our third-quarter results reflected a continuing tough economic environment," said Paul Otellini, Intel president and CEO. "The world of computing is in the midst of a period of breakthrough innovation and creativity. As we look to the fourth quarter, we're pleased with the continued progress in Ultrabooks and phones and excited about the range of Intel-based tablets coming to market."

Q3 2012 Key Financial Information and Business Unit Trends (GAAP, unless otherwise stated)

PC Client Group revenue of $8.6 billion, flat sequentially and down 8 percent year-over-year
Data Center Group revenue of $2.7 billion, down 5 percent sequentially and up 6 percent year-over-year
Other Intel® architecture group revenue of $1.2 billion, up 6 percent sequentially and down 14 percent year-over-year
Gross margin of 63.3 percent, 1.3 percentage points above the midpoint of the company’s updated expectation of 62 percent.
R&D plus MG&A spending $4.6 billion, unchanged.
Tax rate of 24 percent, below the company’s expectation of approximately 28 percent.

Business Outlook

Intel’s Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures or other investments that may be completed after Oct. 16.

Q4 2012 (GAAP, unless otherwise stated)

Revenue: $13.6 billion, plus or minus $500 million.
Gross margin percentage: 57 percent and 58 percent Non-GAAP (excluding amortization of acquisition-related intangibles), both plus or minus a couple of percentage points.
R&D plus MG&A spending: approximately $4.5 billion.
Amortization of acquisition-related intangibles: approximately $75 million.
Impact of equity investments and interest and other: approximately $75 million.
Depreciation: approximately $1.6 billion.
Tax Rate: approximately 27 percent.
Full-year capital spending: $11.3 billion, plus or minus $300 million.

For additional information regarding Intel’s results and Business Outlook, please see the CFO commentary at: www.intc.com/results.cfm.

Status of Business Outlook

Intel’s Business Outlook is posted on intc.com and may be reiterated in public or private meetings with investors and others. The Business Outlook will be effective through the close of business Dec. 14 unless earlier updated; except that the Business Outlook for amortization of acquisition-related intangibles, impact of equity investments and interest and other, and tax rate, will be effective only through the close of business on Oct. 23. Intel’s Quiet Period will start from the close of business on Dec. 14 until publication of the company’s fourth-quarter earnings release, scheduled for Jan. 17, 2013. During the Quiet Period, all of the Business Outlook and other forward-looking statements disclosed in the company’s news releases and filings with the SEC should be considered as historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.

GAAP Financial Comparison

Quarterly

Q3 2012

Q2 2012

vs. Q2 2012

Revenue

$13.5 billion

Flat

Gross Margin

63.3%

63.4%

Flat

Operating Income

$3.8 billion

Flat

Net Income

$3.0 billion

$2.8 billion

up 5.1%

Earnings Per Share

58 cents

54 cents

up 7.4%

Non-GAAP Financial Comparison

Quarterly

Q3 2012

Q2 2012

vs. Q2 2012

Gross Margin

64.3%

64.4%

Flat

Operating Income

$4.1 billion

Flat

Net Income

$3.1 billion

$3.0 billion

up 4.8%

Earnings Per Share

60 cents

57 cents

up 5.3%

Non-GAAP results exclude the amortization of acquisition-related intangible
assets and the related income tax effect of these charges.

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