Recent Highlight

Recent Highlights

Intel Fourth-Quarter Net Income $2.3 billion, Up 875%

Fourth Quarter Results

• Revenue $10.6 Billion, up $2.3 Billion and 28% Year-over-Year

• Record Gross Margin of 65%, up 12 Points Year-over-Year

• Operating Income $2.5 Billion, up $958 Million and 62% Year-over-Year

• Net Income $2.3 Billion, up $2.0 Billion and 875% Year-over-Year

• EPS 40 Cents, up 36 Cents Year-over-Year

Fourth-Quarter Results, Excluding the Settlement Agreement with AMD

• Non-GAAP Operating Income $3.7 Billion, up $2.2 Billion and 143% Year-over-Year

• Non-GAAP Net Income $3.1 Billion, up $2.3 Billion and 267% Year-over-Year

• Non-GAAP EPS 55 Cents, up 40 Cents Year-over-Year

SANTA CLARA, Calif., Jan. 14, 2010 - Intel Corporation today reported fourth-quarter revenue of $10.6 billion. The company reported operating income of $2.5 billion, net income of $2.3 billion and EPS of 40 cents.

For 2009 Intel posted revenue of $35.1 billion. The company reported full-year operating income of $5.7 billion, net income of $4.4 billion and EPS of 77 cents. The company generated more than $11 billion in cash from operations and paid cash dividends of $3.1 billion.

"Intel's strong 2009 results reflect our investment in industry-leading manufacturing and product innovation," said Paul Otellini, Intel president and CEO. "This strategy has enabled us to generate unprecedented operating efficiencies while growing our traditional businesses and creating exciting new market opportunities, even in difficult economic times. Our ability to weather this business cycle demonstrates that microprocessors are indispensable in our modern world. Looking forward, we plan to deliver the benefits of computing to an expanding set of products, markets and customers."

2009 Non-GAAP results exclude the European Commission fine of $1.45 billion and the settlement agreement with AMD of $1.25 billion, and the related tax impacts of this charge. Results for 2008 exclude a $938 million impairment of our investments in Clearwire Corp. and the related tax impacts of this charge.

Q4 2009 Key Financial Information

• PC Client Group revenue up 10 percent, Data Center Group revenue up 21 percent, and Other Intel Architecture group revenue up 22 percent, Intel ® Atom™ microprocessor and chipset revenue up 6 percent, all sequentially.

• The average selling price (ASP) for microprocessors was up sequentially.

• R&D plus MG&A spending of $3.1 billion (excluding the $1.25 billion settlement agreement with AMD) was higher than the company's expectation.

• The net gain of $96 million from equity investments and interest and other was better than the company's expectation.

• The effective tax rate was 12 percent, versus the company's revised expectation of 20 percent.

Full Year 2009 Key Financial Information

• PC Client Group revenue down 6 percent, Data Center Group revenue down 2 percent, and Other Intel Architecture group revenue down 21 percent, Intel Atom microprocessor and chipset revenue up 167 percent.

• Gross margin of 55.7 percent, flat to 2008.

• EC fine of $1.45 billion and AMD settlement agreement of $1.25 billion.

• Full-year capital spending $4.5 billion, consistent with the company's expectation.

2008 Highlights

2008 Highlights

Net Revenue

Diluted Earnings Per Share

Geographic Breakdown of Revenue

Dividends Per Share Paid

Capital Additions to Propery, Plant and Equipment

Research and Development**