How did Intel's revenue perform in the second quarter of 2002 compared to the previous year?

Intel's net revenues for the second quarter ending June 29, 2002, were $6.319 billion, which was essentially flat compared to $6.334 billion in the second quarter of 2001. This stability was achieved through a slight increase in the Intel Architecture business, which offset a significant decline in the Intel Communications Group (ICG).

What were the key charges impacting Intel's profitability in this period?

Intel recorded a $106 million pre-tax charge for winding down its Intel Online Services Web hosting business. Additionally, the company recognized a $112 million impairment charge on acquired intangibles, largely associated with the previous acquisition of Xircom, Inc.

How did Intel's earnings per share (EPS) change year-over-year?

Intel's basic earnings per share (EPS) improved significantly. For the second quarter of 2002, basic EPS was $0.07, up from $0.03 in the second quarter of 2001. For the first six months of the year, basic EPS was $0.21, compared to $0.10 in the same period of the prior year.

What is the status of Intel's cash and investments?

At June 29, 2002, Intel held $10.1 billion in cash, short-term investments, and fixed income trading assets. This represents a decrease from $11.2 billion at the end of the previous fiscal year (December 29, 2001). The reduction is primarily attributed to significant capital expenditures and substantial share repurchases.

INTC 10-Q Quarterly Report Q2 FY2002 — Revenue, Net Income, EPS

Summary

Intel Corporation's (INTC) 10-Q filing for the period ending June 29, 2002, reveals flat net revenues for the second quarter compared to the prior year, driven by a slight increase in the Intel Architecture business offset by declines in the Intel Communications Group (ICG). While overall revenue remained stable, the company faced challenges including a $106 million charge for winding down its web hosting business and a $112 million impairment charge related to acquired intangibles from the Xircom acquisition. Despite these one-time impacts, operational improvements were noted in ICG, with reduced losses due to lower inventory write-downs and streamlined operating expenses. The company reported basic earnings per share of $0.07 for the quarter and $0.21 for the first half of 2002, showing an improvement from the prior year's $0.03 and $0.10 respectively. Intel's financial condition remains robust, with substantial cash and investment balances, although cash decreased from the prior year-end due to significant capital expenditures and share repurchases. The company is navigating a dynamic market, focusing on its core Intel Architecture business while managing declines in its communications segments, and is actively managing legal proceedings and strategic investments.

Key Highlights

1Net revenues for the second quarter were $6.319 billion, essentially flat compared to $6.334 billion in the prior year's second quarter.
2Basic earnings per share (EPS) for the second quarter of 2002 were $0.07, an increase from $0.03 in the second quarter of 2001.
3The Intel Architecture business saw a slight revenue increase to $5.213 billion, driven by higher unit volumes, while the Intel Communications Group (ICG) experienced a revenue decline of 16% ($99 million).
4The company incurred a $106 million pre-tax charge related to the wind-down of its Intel Online Services Web hosting business.
5An impairment charge of $112 million was recognized on acquired intangibles, primarily related to the Xircom acquisition.
6Cash and cash equivalents, short-term investments, and trading assets totaled $10.1 billion at June 29, 2002, a decrease from $11.2 billion at December 29, 2001.
7Intel repurchased approximately 68.1 million shares of common stock for $2.0 billion in the first half of 2002.

INTEL CORP Quarterly Report for Q2 Ended Jun 29, 2002

Summary

Key Highlights

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