What were the key drivers of Intel's revenue growth in Q1 2011?

Revenue growth was primarily driven by significantly higher microprocessor unit sales and increased average selling prices. The acquisitions of McAfee and Infineon's Wireless Solutions (WLS) business also contributed approximately $500 million to the revenue in the quarter.

How did the acquisitions of McAfee and WLS impact Intel's financial results?

The acquisitions of McAfee and WLS were completed in Q1 2011. McAfee was acquired for $6.7 billion, adding significant goodwill and intangible assets, and contributing approximately $500 million to net revenue. The WLS business was acquired for $1.4 billion, strengthening Intel's mobile communications offerings and also contributing to revenue.

What is the significance of the "chipset design issue" mentioned in the report?

Intel identified a design issue with its Intel 6 Series Express Chipset family, affecting products sold in late 2010 and early 2011. The company incurred a total estimated cost of $654 million to repair and replace affected materials and systems. A charge of $343 million was recorded in Q1 2011 for this issue, impacting gross margin by approximately 3 percentage points.

What is Intel's outlook for capital expenditures and technological development?

Intel increased its full-year capital spending forecast to $10.2 billion to support its lead in process technology, focusing on 22nm and 14nm technologies, including building a larger scale 14nm fabrication facility. The company also highlighted its 'tick-tock' technology development cadence and the advancement to 3D transistor design ('Tri-Gate') with its 'Ivy Bridge' processors.

INTC 10-Q Quarterly Report Q2 FY2011 — Revenue, Net Income, EPS

Summary

Intel Corporation's first quarter 2011 results, filed on May 8, 2011, showcased robust growth with net revenue reaching $12.85 billion, a significant 25% increase year-over-year. This surge was driven by strong microprocessor unit sales and higher average selling prices, coupled with contributions from recent acquisitions. Net income also saw a substantial rise to $3.16 billion, translating to diluted earnings per share of $0.56. The company highlighted its strategic focus on expanding into new market segments, including smartphones and tablets, with new product introductions like the Intel Atom processor Z670 platform. Significant investments in research and development, including the advancement of 22nm process technology with the "Ivy Bridge" processors and the introduction of the "Tri-Gate" transistor design, underscore Intel's commitment to maintaining its technology leadership. The company raised its full-year capital spending outlook to $10.2 billion to support these advancements.

Financial Highlights

51 data points

Beta

Revenue

$12.85B

0.6% Gross Margin

Net Income

$3.16B

0.2% Net Margin

EPS (Diluted)

$0.56

Total Assets

$65.55B

Cash & Equivalents

$4.19B

Free Cash Flow

$1.29B

Financial Statements

Beta

Revenue	$12.85B
Cost of Revenue	$4.96B
Gross Profit	$7.88B
R&D Expenses	$1.92B
SG&A Expenses	$1.77B
Operating Expenses	$3.73B
Operating Income	$4.16B
Interest Expense	$6.00M
Net Income	$3.16B
EPS (Basic)	$0.58
EPS (Diluted)	$0.56
Shares Outstanding (Basic)	5.45B
Shares Outstanding (Diluted)	5.61B

Key Highlights

1Net revenue for the quarter reached $12.85 billion, up 25% year-over-year, marking a record quarter for revenue.
2Net income rose to $3.16 billion, with diluted earnings per share of $0.56, also a record.
3Completed significant acquisitions of McAfee Inc. for $6.7 billion and Infineon's Wireless Solutions (WLS) business for $1.4 billion, expanding into security and mobile communications.
4Launched the Intel Atom processor Z670 platform, codenamed "Oak Trail," targeting the tablet market.
5Advanced its manufacturing technology with the 22nm process technology and the introduction of the "Tri-Gate" transistor design for "Ivy Bridge" processors.
6Increased full-year capital expenditure forecast to $10.2 billion to support technological advancements.
7Managed a $654 million product recall/repair program related to a chipset design issue, with $343 million recorded in Q1 2011.

INTEL CORP Quarterly Report for Q2 Ended Apr 2, 2011

Summary

Financial Highlights

Key Highlights

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