8-KEarnings & Results

INTEL CORP 8-K Report, Financial Results (Apr 13, 2010)

Filed April 13, 2010For Securities:INTC

Summary

This 8-K filing from Intel Corporation, dated April 13, 2010, primarily reports on the company's financial results for the quarter ended March 27, 2010. A key aspect of this report is the presentation of both GAAP (Generally Accepted Accounting Principles) and non-GAAP financial measures. The non-GAAP figures specifically exclude a significant $1.25 billion charge incurred in the fourth quarter of 2009 related to a settlement with Advanced Micro Devices (AMD), along with its associated tax impacts. Intel's management utilizes these non-GAAP metrics to better assess and compare underlying business performance, as the AMD settlement charge materially impacts comparability. The company provides this non-GAAP information to assist investors in evaluating performance on the same basis as management and to facilitate easier comparisons with historical results. Investors are advised to review both GAAP and non-GAAP figures, understanding that the latter are not a substitute for GAAP but are intended to provide a clearer view of operational trends.

Key Highlights

  • 1Intel reported financial results for the quarter ended March 27, 2010.
  • 2The filing includes both GAAP and non-GAAP financial measures.
  • 3Non-GAAP measures exclude a $1.25 billion charge from a Q4 2009 settlement with AMD and related tax impacts.
  • 4Management uses non-GAAP figures to evaluate underlying business performance and comparability.
  • 5The company aims to provide investors with a clearer view of operational trends by disclosing non-GAAP results.
  • 6Forward-looking statements for 2010 and Q2 2010 were also included in the press release attached as Exhibit 99.1.
  • 7Investors are encouraged to consider both GAAP and non-GAAP measures for a comprehensive understanding.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Intel Corporation's financial results for the quarter ended March 27, 2010, and to provide forward-looking statements. It also highlights the company's use of non-GAAP financial measures to offer a clearer view of operational performance.

Intel is presenting non-GAAP financial measures to exclude the significant $1.25 billion charge from the fourth quarter of 2009 related to its settlement with AMD, and the associated tax impacts. Management uses these non-GAAP figures to better assess and compare the underlying business performance, as the AMD settlement charge significantly impacts comparability.

Investors should interpret the non-GAAP financial measures as supplemental information that management uses to assess performance. While they aim to provide a clearer view of operational trends, they should not be considered a substitute for, or superior to, the financial measures calculated in accordance with GAAP. Investors are advised to carefully evaluate both GAAP and non-GAAP results and their reconciliations.

The AMD settlement charge was a one-time event in Q4 2009 totaling $1.25 billion, plus associated tax impacts. It is significant because it materially affects the comparability of financial results. By excluding it in non-GAAP reporting, Intel aims to show the performance of its core business operations more clearly.