Summary
Intel Corporation's first quarter 2012 report shows steady revenue, with a slight increase to $12.906 billion compared to $12.847 billion in the same period last year. Net income, however, saw a decrease to $2.738 billion from $3.160 billion year-over-year, resulting in a lower diluted earnings per share of $0.53. The company experienced increased research and development (R&D) expenses, up by 25% to $2.401 billion, reflecting investments in next-generation process technologies and the integration of recent acquisitions like McAfee and the Infineon wireless solutions business. Despite a slight dip in net revenue, the PC Client Group, Intel's largest segment, maintained strong operating income. The Data Center Group also showed resilience, with revenue largely stable year-over-year. The company is actively managing its cash flow, generating $2.972 billion from operations while also undertaking significant capital expenditures and returning capital to shareholders through dividends and share repurchases. Intel is emphasizing its technological advancements, including the launch of its 22nm Tri-Gate transistor technology with the new Ivy Bridge processors and the Intel Xeon E5-2600 series for data centers. The company is also strategically expanding its presence in emerging markets and mobile device segments, though these areas, collectively reported as "Other Intel Architecture Operating Segments," experienced an operating loss. Intel is navigating supply chain challenges, particularly the impact of the Thailand floods on disk drive availability, which it expects to resolve in the second quarter. The company reiterates its commitment to innovation and its diversified product portfolio, while managing increased operating expenses related to R&D and integration of acquisitions.
Financial Highlights
51 data points| Revenue | $12.91B |
| Cost of Revenue | $4.64B |
| Gross Profit | $8.27B |
| R&D Expenses | $2.40B |
| SG&A Expenses | $1.97B |
| Operating Expenses | $4.46B |
| Operating Income | $3.81B |
| Interest Expense | $31.00M |
| Net Income | $2.74B |
| EPS (Basic) | $0.55 |
| EPS (Diluted) | $0.53 |
| Shares Outstanding (Basic) | 5.00B |
| Shares Outstanding (Diluted) | 5.19B |
Key Highlights
- 1Net revenue for the first quarter of 2012 was $12.906 billion, a slight increase from $12.847 billion in Q1 2011, driven by higher average selling prices and contributions from recent acquisitions.
- 2Net income decreased to $2.738 billion ($0.53 diluted EPS) in Q1 2012 from $3.160 billion ($0.56 diluted EPS) in Q1 2011, impacted by higher operating expenses.
- 3Research and Development (R&D) expenses increased significantly by 25% year-over-year to $2.401 billion, reflecting investments in new process technologies (22nm Tri-Gate) and product refreshes.
- 4The PC Client Group remains the largest revenue contributor, with $8.451 billion in Q1 2012, though operating income saw a slight decrease.
- 5The Data Center Group demonstrated resilience with stable revenue at $2.453 billion, though operating income declined due to higher operating expenses.
- 6Intel completed four acquisitions in Q1 2012 for $176 million, primarily allocated to goodwill and intangibles, and continues to integrate recent acquisitions like McAfee and Infineon's wireless business.
- 7Cash flow from operations was $2.972 billion, while the company also returned $1.0 billion to shareholders via dividends and repurchased $1.5 billion of its stock during the quarter.