8-KRegulation FD

INTEL CORP 8-K Report, Regulation FD Disclosure (May 12, 2010)

Filed May 12, 2010For Securities:INTC

Summary

Intel Corporation (INTC) filed an 8-K on May 11, 2010, detailing key forward-looking financial targets discussed at their Investor Meeting. The company's CEO, Paul Otellini, indicated expectations for low double-digit compound annual growth rates in both revenue and earnings per share over the next few years. This suggests a positive outlook for the company's top-line and profitability expansion. Furthermore, CFO Stacy Smith announced an upward revision to the company's gross margin expectations, projecting a range of 55-65% from the prior 50-60% outlook. This enhancement in gross margin is a significant positive signal for operational efficiency and profitability. The report also introduced non-GAAP financial measures, including Return on Invested Capital (ROIC), aimed at providing investors with a clearer view of capital deployment effectiveness. While these non-GAAP measures are presented to offer additional insights, investors are reminded to evaluate them alongside GAAP results.

Key Highlights

  • 1Intel expects low double-digit compound annual growth rates for revenue and EPS over the next few years.
  • 2Gross margin expectations have been raised to 55-65% from the previous 50-60% range.
  • 3The company is introducing Return on Invested Capital (ROIC) as a key performance metric to assess capital deployment efficiency.
  • 4Presentations were made by CEO Paul Otellini and CFO Stacy Smith at a publicly webcast Investor Meeting.
  • 5Non-GAAP financial measures are being used to provide additional context on performance, including adjustments for share-based compensation.
  • 6Investors are advised to consider non-GAAP measures in conjunction with, and not as a substitute for, GAAP financial results.

Frequently Asked Questions

Intel's CEO, Paul Otellini, indicated that the company is targeting low double-digit compound annual growth rates for both revenue and earnings per share (EPS) over the next few years.

Yes, Intel's CFO, Stacy Smith, announced an updated and higher range for gross margins, expecting them to be in the 55-65% range over the next few years, an increase from the previously disclosed 50-60% range.

ROIC stands for Return on Invested Capital. Intel defines it as adjusted net operating profit after taxes divided by beginning invested capital. Management believes ROIC offers greater visibility into how effectively the company deploys its capital and uses it as a high-level target to ensure overall performance is understood and acceptable.

Intel states that its non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Investors are encouraged to carefully evaluate the GAAP financial results and reconciliations provided.