INTEL CORP Quarterly Report for Q1 Ended Mar 27, 2010

Summary

Intel Corporation (INTC) reported a strong first quarter for 2010, with net revenue reaching $10.3 billion, a significant 44% increase from $7.1 billion in the same period last year. This growth was primarily driven by a substantial rebound in the PC Client Group, which saw a 43% revenue increase, and strong performance in the Data Center Group. The company's gross margin improved dramatically to 63.4% from 45.3% year-over-year, reflecting increased revenue and improved factory utilization. Despite the robust revenue and profit growth, Intel's R&D and SG&A expenses also increased, by 19% and 26% respectively, as the company continued to invest in new technologies and product ramps, including its 32nm process technology. The company generated $4.1 billion in cash flow from operations and maintained a healthy liquidity position with $16.3 billion in cash and investments. Intel also announced its business outlook for Q2 2010, projecting revenues around $10.2 billion and a gross margin of approximately 64%.

Key Highlights

• 1Net revenue surged to $10.3 billion, up 44% year-over-year, indicating a strong recovery from the previous year.
• 2Gross margin significantly improved to 63.4% from 45.3% YoY, driven by higher revenue and better factory utilization.
• 3The PC Client Group revenue grew by 43% YoY, with strong contributions from microprocessor and chipset sales, particularly for notebooks.
• 4Data Center Group revenue increased by 48% YoY, demonstrating growth in server, workstation, and storage markets.
• 5Operating income reached $3.45 billion, a substantial increase from the prior year's quarter, reflecting improved profitability.
• 6Cash flow from operations was strong at $4.1 billion, supporting liquidity and strategic investments.
• 7Intel continues to invest in R&D and SG&A, with expenses up 19% and 26% respectively, as it ramps new 32nm process technology products.

Frequently Asked Questions