8-KEarnings & Results

INTEL CORP 8-K Report, Financial Results (Jul 14, 2009)

Filed July 14, 2009For Securities:INTC

Summary

Intel Corporation filed an 8-K on July 14, 2009, to report its financial results for the quarter ended June 27, 2009, and provide forward-looking statements. A significant event impacting the results was a European Commission (EC) fine of €1.06 billion (approximately $1.45 billion). This fine is presented separately within operating expenses for the second quarter of 2009. The company is providing both GAAP and non-GAAP financial measures to offer investors a clearer view of its operational performance, excluding the impact of the EC fine. Management utilizes these non-GAAP measures to assess and evaluate business trends, as the fine is an unusual and significant charge that hinders period-to-period comparability. Investors are advised to consider both GAAP and non-GAAP figures, along with the provided reconciliations, to fully understand the financial impact.

Key Highlights

  • 1Intel reported Q2 2009 financial results alongside forward-looking statements.
  • 2A significant event during the quarter was a €1.06 billion (approx. $1.45 billion) fine from the European Commission.
  • 3This EC fine is treated as a separate operating expense for Q2 2009.
  • 4The company is providing both GAAP and non-GAAP financial results for Q2 2009.
  • 5Non-GAAP measures exclude the EC fine to better reflect underlying business trends and operational performance.
  • 6Management uses non-GAAP figures for internal assessment and believes they aid comparability.
  • 7Investors are encouraged to review both GAAP and non-GAAP results and their reconciliations.

Frequently Asked Questions

This 8-K filing is primarily to report Intel's financial results for the quarter ended June 27, 2009, and to provide forward-looking guidance. A key piece of information disclosed is a significant fine imposed by the European Commission.

The European Commission imposed a fine of €1.06 billion (approximately $1.45 billion) on Intel. This fine is recognized as an operating expense in the second quarter of 2009. Intel is presenting both GAAP (Generally Accepted Accounting Principles) and non-GAAP financial results, with the non-GAAP measures excluding the impact of this fine.

Intel is providing non-GAAP financial measures to give investors a view of the company's performance that excludes the significant and unusual charge of the European Commission fine. Management believes that by removing this fine, the non-GAAP figures provide a clearer picture of the underlying business trends and aid in period-to-period comparisons, which are important for evaluating operational performance.

According to the provided table, the EC fine resulted in a significant negative impact on Q2 2009. GAAP net income was a loss of $398 million with a loss per share of $0.07. In contrast, the non-GAAP net income (excluding the fine) was a profit of $1,049 million with earnings per share of $0.18, highlighting the substantial effect of the fine.