Summary
Intel Corporation (INTC) reported a strong third quarter and first nine months of 2010, demonstrating significant year-over-year growth in net revenue and operating income. Net revenue for the third quarter reached $11.1 billion, an 18% increase from the prior year, driven by higher microprocessor unit sales and average selling prices. This robust performance was underpinned by strong demand in corporate segments and emerging markets, despite some softness in consumer segments of mature markets. The company's strategic focus on energy-efficient performance, internet connectivity, and security is being advanced through key initiatives, including proposed acquisitions of McAfee, Inc. and Infineon's Wireless Solutions business. These moves signal Intel's intent to broaden its offerings beyond traditional chip manufacturing into complete hardware and software solutions. The company also reported healthy cash flow from operations and maintained a strong liquidity position, indicating financial stability.
Financial Highlights
51 data points| Revenue | $11.10B |
| Cost of Revenue | $3.78B |
| Gross Profit | $7.32B |
| R&D Expenses | $1.68B |
| SG&A Expenses | $1.51B |
| Operating Expenses | $3.19B |
| Operating Income | $4.14B |
| Net Income | $2.96B |
| EPS (Basic) | $0.53 |
| EPS (Diluted) | $0.52 |
| Shares Outstanding (Basic) | 5.58B |
| Shares Outstanding (Diluted) | 5.69B |
Key Highlights
- 1Net revenue for Q3 2010 was $11.1 billion, up 18% year-over-year, reaching record quarterly levels.
- 2Operating income for Q3 2010 was $4.1 billion, a significant increase from $2.6 billion in Q3 2009.
- 3Gross margin percentage improved to 65.9% in Q3 2010 from 57.6% in Q3 2009, reflecting improved product costs and higher revenue.
- 4The company announced definitive agreements to acquire McAfee, Inc. for approximately $7.68 billion and Infineon's Wireless Solutions business for approximately $1.4 billion.
- 5Cash flow from operations was strong, totaling $11.1 billion for the first nine months of 2010.
- 6Diluted Earnings Per Share (EPS) for Q3 2010 was $0.52, a substantial increase from $0.33 in Q3 2009.
- 7Intel's 'tick-tock' technology development cadence is progressing, with 32-nanometer process technology products expected for launch later in Q4 2010.