Summary
Intel Corporation reported strong revenue growth in the second quarter of 2011, with net revenue reaching $13.03 billion, a 21% increase year-over-year. This growth was driven by increased average selling prices for microprocessors, particularly in the PC Client Group, and the inclusion of revenue from recent acquisitions of McAfee and Infineon's Wireless Solutions (WLS) business. While gross margin percentage declined year-over-year due to increased startup costs for new manufacturing processes and amortization of acquisition-related intangibles, the company saw significant revenue increases in its PC Client Group and Data Center Group. Despite a decrease in operating income percentage, Intel's strategic focus on expanding into new market segments like mobile communications, tablets, and security, supported by significant investments in R&D and acquisitions, positions it for future growth. The company also demonstrated strong cash generation from operations and provided an optimistic business outlook for the remainder of 2011, expecting further revenue growth.
Financial Highlights
51 data points| Revenue | $13.03B |
| Cost of Revenue | $5.13B |
| Gross Profit | $7.90B |
| R&D Expenses | $1.99B |
| SG&A Expenses | $1.91B |
| Operating Expenses | $3.97B |
| Operating Income | $3.94B |
| Interest Expense | $0 |
| Net Income | $2.95B |
| EPS (Basic) | $0.56 |
| EPS (Diluted) | $0.54 |
| Shares Outstanding (Basic) | 5.29B |
| Shares Outstanding (Diluted) | 5.44B |
Key Highlights
- 1Net revenue for Q2 2011 was $13.03 billion, a 21% increase compared to $10.77 billion in Q2 2010.
- 2Gross margin percentage decreased to 60.6% in Q2 2011 from 67.2% in Q2 2010, primarily due to higher startup costs and acquisition-related amortization.
- 3The acquisitions of McAfee and Infineon's WLS business contributed significantly to revenue in Q2 2011.
- 4R&D and Marketing, General & Administrative expenses increased year-over-year, reflecting investments in new technologies and growth areas.
- 5Data Center Group revenue increased by 15% year-over-year, driven by higher unit sales and ASPs.
- 6The company repurchased $2.0 billion of common stock and paid $1.0 billion in dividends during Q2 2011, demonstrating a commitment to returning capital to shareholders.
- 7Intel provided an optimistic business outlook for Q3 2011 and full-year 2011, expecting continued revenue growth and a rebound in gross margin percentage.