INTEL CORP Quarterly Report for Q2 Ended Jun 28, 2008

Summary

Intel Corporation reported strong financial results for the quarter ending June 28, 2008. Net revenue increased by 9% year-over-year to $9.47 billion, driven by robust microprocessor unit sales, particularly in the mobile segment. Gross margin significantly improved to 55.4% from 46.9% in the prior year, reflecting higher unit sales and improved manufacturing efficiencies, partially offset by lower average selling prices for microprocessors. Net income rose by 25% to $1.60 billion, with diluted earnings per share increasing to $0.28 from $0.22. The company also highlighted the growing importance of its Mobility Group, which for the first time exceeded the Desktop segment in microprocessor shipments. Intel continued its focus on innovation, with progress in its 45nm process technology and the launch of the Intel Atom processor family to address the growing netbook market. Significant stock repurchases and dividend payments were made during the period, demonstrating a commitment to returning capital to shareholders.

Key Highlights

• 1Net revenue grew 9% year-over-year to $9.47 billion, driven by increased microprocessor unit sales.
• 2Gross margin improved significantly to 55.4% compared to 46.9% in the prior year, indicating enhanced manufacturing efficiency and product mix.
• 3Net income increased 25% to $1.60 billion, with diluted EPS rising to $0.28 from $0.22.
• 4The Mobility Group's microprocessor shipments surpassed the Digital Enterprise Group's for the first time, signaling a strategic shift in demand.
• 5Intel launched its low-power Intel Atom processors to capitalize on the emerging netbook market.
• 6The company repurchased $5.0 billion in stock and paid $1.5 billion in dividends during the first half of the year.
• 7Restructuring and asset impairment charges were $96 million for the quarter, with the company expecting further declines.

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