8-KEarnings & Results

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

Filed October 14, 2009For Securities:INTC

Summary

Intel Corporation (INTC) filed an 8-K on October 13, 2009, to report on its financial results for the quarter ended September 26, 2009, and provide forward-looking statements for the remainder of 2009. The filing highlights a significant recovery in operating performance, demonstrating the company's resilience. A key focus of the report is the presentation of both GAAP and non-GAAP financial measures, with the latter excluding a substantial €1.06 billion (approximately $1.45 billion) fine imposed by the European Commission in Q2 2009. Investors should note the strong rebound in the company's operational metrics, as indicated by the non-GAAP figures, which management uses to assess underlying business trends. The clear separation of the EC fine allows for a more accurate comparison of Intel's core business performance over time. The report aims to provide investors with enhanced transparency and comparability, enabling them to better understand the company's operational health beyond the impact of the one-time EC fine.

Key Highlights

  • 1Intel reported strong financial results for the quarter ended September 26, 2009, with a significant rebound in operational performance.
  • 2The company is providing both GAAP and non-GAAP financial measures to offer investors clarity on its core business performance.
  • 3Non-GAAP measures exclude a €1.06 billion (approx. $1.45 billion) fine from the European Commission levied in Q2 2009.
  • 4Management uses non-GAAP figures to assess business trends and improve period-to-period comparability.
  • 5The Q3 2009 GAAP Net Income was $1,856 million, and non-GAAP Net Income was also $1,856 million, showing no impact from the fine in Q3 itself.
  • 6Q3 2009 GAAP Earnings per Share was $0.33, with non-GAAP Earnings per Share also at $0.33.
  • 7The filing includes forward-looking statements for the remainder of 2009, though specific projections are not detailed in this excerpt.

Frequently Asked Questions

Intel is presenting both GAAP and non-GAAP results to provide investors with a clearer view of the company's operational performance. The non-GAAP figures exclude a large, one-time fine from the European Commission (€1.06 billion) that significantly impacted Q2 2009 results, making it difficult to compare operational trends. Management believes excluding this fine allows for a more accurate assessment of the underlying business.

The European Commission fine was incurred in Q2 2009. For the third quarter ended September 26, 2009, Intel's reported GAAP Net Income and non-GAAP Net Income were both $1,856 million, and GAAP Earnings per Share and non-GAAP Earnings per Share were both $0.33. This indicates that the EC fine did not directly impact the Q3 2009 operational results themselves, but rather previous quarters, and the exclusion is for comparative analysis.

The $1.45 billion is the approximate U.S. dollar equivalent of the €1.06 billion fine imposed by the European Commission in the second quarter of 2009. This significant charge negatively impacted Intel's GAAP financial results in Q2 2009, and its exclusion in the non-GAAP presentation aims to isolate the performance of Intel's core operations.

The filing suggests a strong operational recovery for Intel in Q3 2009. By excluding the extraordinary EC fine, the non-GAAP numbers indicate that the company's core business is performing well and is comparable to previous periods without such a significant, unexpected charge. The identical GAAP and non-GAAP figures for Q3 Net Income and EPS underscore the clean operational performance in that quarter.