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INTEL CORP Quarterly Report for Q1 Ended Mar 27, 2004

Filing Date
Filed May 3, 2004
Period End
March 27, 2004
Security
INTC
In the record · 2016–202610-K1110-Q328-K181

INTC filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 181 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’17Mar ’17
  2. Leadership change8-K · Mar ’20Mar ’20
  3. Leadership change8-K · May ’22May ’22
  4. Deal closed8-K · Sep ’25Sep ’25

01—Abstract

Summary

Summary of the 10-Q filed May 3, 2004. Cited figures are marked; the original filing is the authoritative source.

Intel Corporation reported strong financial results for the first quarter ended March 27, 2004.

Net revenue surged by 20% year-over-year to $8.1 billiona, driven primarily by a significant increase in microprocessor unit sales and improved average selling prices within the Intel Architecture business. This robust revenue growth, coupled with improved gross margins (60.2% vs. 52.0% in the prior year), led to a substantial increase in operating income, which nearly doubled to $2.5 billion. The company also demonstrated solid cash flow from operations, underscoring its financial strength and ability to fund its strategic initiatives, including a significant share repurchase program and dividend payments.

02—Key points

Key Highlights

  1. Net revenue increased 20% to $8.1 billion, driven by strong microprocessor sales in the Intel Architecture business.
  2. Gross margin improved significantly to 60.2% from 52.0% in the prior year, indicating better cost management and pricing power.
  3. Operating income more than doubled to $2.48 billion, reflecting strong revenue growth and improved margins.
  4. Net income rose to $1.73 billion, or $0.26 per diluted share, from $915 million, or $0.14 per diluted share, in the prior year.
  5. The company repurchased $1.5 billion of its common stock, demonstrating a commitment to returning capital to shareholders.
  6. Cash flow from operations remained strong at $1.77 billion, supporting ongoing investments and capital returns.
  7. The Intel Communications Group (ICG) continued to operate at a loss, but revenue saw an increase, driven by embedded processing and wireless connectivity products.

03—Questions

Frequently Asked Questions

  1. What was the primary driver of Intel's revenue growth in Q1 2004?

    Intel's revenue growth was primarily driven by a significant increase in unit sales of microprocessors and, to a lesser extent, higher average selling prices within its Intel Architecture business. The company saw a 20% year-over-year increase in net revenue to $8.1 billion.

  2. How did Intel's profitability change compared to the previous year?

    Intel experienced a substantial improvement in profitability. Gross margin increased to 60.2% from 52.0% in Q1 2003, and operating income nearly doubled to $2.48 billion. This led to net income of $1.73 billion, or $0.26 per diluted share, compared to $915 million, or $0.14 per diluted share, in the prior year.

  3. What is Intel's strategy regarding share repurchases and dividends?

    Intel demonstrated a strong commitment to returning capital to shareholders. In Q1 2004, the company repurchased $1.5 billion of its common stock. Additionally, the Board of Directors approved an increase in the quarterly cash dividend from $0.02 to $0.04 per share, resulting in higher dividend payments during the quarter.

  4. How is the Intel Communications Group (ICG) performing?

    The Intel Communications Group (ICG) reported an operating loss of $219 million, similar to the prior year's loss of $218 million. However, revenue for ICG increased by 11% year-over-year, primarily driven by sales of embedded processing components and wireless connectivity products, partially offset by lower sales of cellular baseband chipsets.

04—Continue

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