Intel posts record quarterly, yearly results

There’s no stopping Intel, it seems. Barely two weeks after the thunderous launch of its Sandy Bridge processors, the chipmaker has published eye-popping financial results for the past quarter. Revenue, operating income, net income, and earnings per share all broke records—not just for the fourth quarter of 2010, but for the year as a whole.

One thing at a time… let’s first take a gander at the quarterly numbers:

  Q4 2009 Q3 2010 Q4 2010
Revenue $10.6 billion $11.1 billion $11.5 billion
Net income $2.3 billion $3.0 billion $3.4 billion
Gross margin 65% 66% 67.5%

I’m not sure what’s the most jaw-dropping figure, but it might well be that Q4 2010 gross margin. For reference, AMD’s own margin was a solid 20 points behind last quarter. Remember, AMD sold off its fabs.

Now, let’s compare Intel’s 2010 to past years:

  2008 2009 2010
Revenue $37.6 billion $35.1 billion $43.6 billion
Net income $5.3 billion $4.4 billion $11.7 billion
Gross margin 55% 55.7% 66%

To say Intel had a good year would be quite an understatement. Admittedly, the company’s 2009 results were marred by the European Commission’s $1.45-billion fine and its $1.25-billion settlement with AMD. Excluding those charges, Intel says it would have posted net income of $6.6 billion in 2009. No matter how you cut it, though, $11.7 billion is quite a leap forward.

Looking at the ongoing quarter, Intel expects revenue to fall within the rather broad range of $11.1 to $11.9 million, with gross margin to equal 62-66%. As for the ongoing calendar year, Intel is predicting its gross margin will be around 63-67%.

Comments closed
    • tejas84
    • 9 years ago

    Great news for Intel and the boys and gals in blue!

    I can already see the AMD fanboys cannot take how well Intel are doing. You are all resorting to ad hominem attacks on NeelyCam. Leave the guy alone.

    Well if you can’t win an argument I guess you have to resort to shouting the loudest (typical AMD fanboy style).

      • NeelyCam
      • 9 years ago

      Hey, how [i<]you[/i<] doin'..? 😉

      • Meadows
      • 9 years ago

      Dude, ad hominem is [i<]the least[/i<], NeelyCam is just as irritating as Prime1 was. Except he's slightly more chiseled at it.

        • NeelyCam
        • 9 years ago

        I’m just as annoying as you allow me to be.

        Beat me with a solid argument and I back off.

          • flip-mode
          • 9 years ago

          While I think all the down voting you’re getting is ridiculous, it is no excuse for you to start claiming that you don’t sometimes hold steadfastly to unreasonable positions in the face of reasonable arguments. You still take every opportunity to try to convince people that Intel paid AMD 1.25 billion for no darn reason. And, definitely hog the comments of Intel related news stories, which is kinda creepy. But, for what it’s worth I’ve voted up several of your posts here because I see no reason they should have negative scores.

            • NeelyCam
            • 9 years ago

            You’re absolutely right; the Intel/AMD settlement ‘discussion’ was pointless trolling.
            But I’ll keep doing it as long as people keep whining that Intel is [i<]still[/i<] abusing their monopoly position completely against the terms of the settlement, using AMD's bad profits as 'proof''.

            • flip-mode
            • 9 years ago

            I agree that people who continue to allege that AMD is somehow suffering from continued market manipulation on Intel’s behalf just plain don’t have any evidence at all to support the claim, but wouldn’t you find it more useful, dignified, and even effective to debate that head-on instead of employing, as you put it, “pointless trolling”? If you’re actually looking to achieve anything, that is….

            • NeelyCam
            • 9 years ago

            Yeah, I guess you’re right. But, a lot of AMD fans are such easy targets – they get so extremely pissed off so easily, it’s hard to resist the desire to troll…

            It’s funny, I’ve tried to troll against Intel fans a couple of times, too, but I get no reaction whatsoever. Maybe there aren’t that many here, or maybe they just aren’t as sensitive… I don’t know why – could be the performance crown they are collectively “wearing” now.

            I’m hoping BullDozer surprises everybody, so I could play for the other team for a change.

    • axeman
    • 9 years ago

    Considering the value of the US dollar against other currencies in recent years, isn’t this pretty meaningless? I mean, $11.7 billion dollars US, what does that buy you in most countries now? A bag of cheetos? Sorry couldn’t resist. /dons flame retardant suit.

      • NeelyCam
      • 9 years ago

      Lame flamebaiting attempt. Take Trolling 101, that’ll get you going

        • Meadows
        • 9 years ago

        You should know.

          • NeelyCam
          • 9 years ago

          A real tough one is Advanced Trolling 310… In that class you can’t use personal insults anymore.

    • shank15217
    • 9 years ago

    Intel is the 800 pound gorilla, who dares compete with these guys.. AMD is the last hope in the x86 world and bulldozer cannot come soon enough.

      • NeelyCam
      • 9 years ago

      I’m missing your point.
      I think Intel is keeping up the x86 hope alive pretty well.

        • shank15217
        • 9 years ago

        Yea because, Intel is motivated to innovate their x86 line without any competition….

          • NeelyCam
          • 9 years ago

          ARM provides enough competition – AMD isn’t needed for that.

            • shank15217
            • 9 years ago

            Absolutely not true, ARM isn’t making chips, Intel is free to license ARM and make their own chips or buy out one of many small ARM chip design firms. They have billions in the bank, ARM is the least of their worries. Itel isn’t interested in making a penny to the dollar, they want big bucks and thats the server space. X86 hasn’t been displaced by a single ISA so far and ARM isn’t going to displace it no matter how many cell phones are sold around the world. Nvidia isn’t gonna make a dent with their ARM server chips because guess what.. Intel makes better server chips, just like Nvidia makes better GPUs. Intel’s only viable alternative is AMD microprocessors and if AMD can deliver they can hold on to an extremely lucrative market as should be very obvious by Intel’s huge (and growing) margins.

            • NeelyCam
            • 9 years ago

            [quote<]Absolutely not true, ARM isn't making chips[/quote<] You know exactly what I mean when I say ARM provides competition - saying that ARM doesn't "make chips" is a pathetic argument. ARM hasn't displaced x86 yet because it is geared towards extreme power efficiency at the expense of performance... and more importantly, because Intel has had a massive process technology lead over TSMC/others (this is also the singular reason why AMD can't keep up). Who's to say ARM ISA can't be developed to focus more on performance? Once that happens, it all comes down to process technology. When (not "if" but "when") Intel's process technology development slows down because of cost issues, others (TSMC/GloFo/Samsung) can catch up a bit. Whoops - suddently we have competition!!

            • shank15217
            • 9 years ago

            What ISA has competed with x86 and won so far? What makes you think ARM would? x86 and thanks to AMD x86-64 has dominated since 2003.

            • NeelyCam
            • 9 years ago

            I think it’d be hard to argue that ARM hasn’t “won” cell phone and tablet markets already. I mean, bolting a Sandy Bridge onto a tablet is just stupid.

            x86 has dominated only the high-performance markets because it’s been promoted by the two companies with access to the highest-end (i.e., highest-performing) silicon processes. There’s always a need for high-performance chips in servers etc., but the rest of the market is moving to power efficiency and low power.

            Let’s see how well x86 will do then…

            • axeman
            • 9 years ago

            Intel does make ARM. [url<]http://en.wikipedia.org/wiki/XScale[/url<] It's a different market, so they're not really cannibalizing their own sales either. Or it's possible they thought that Atom would end up in handhelds, because the family of XScale that would actually end up in phones got sold to Marvell, who knows. In any case, I'm pretty sure they're not too worried about ARM eating into their profits, not yet.

            • tfp
            • 9 years ago

            Intel sold this arm stuff a few years back. From your link:

            ” Intel sold the PXA family to Marvell Technology Group in June 2006″

            • axeman
            • 9 years ago

            So by the second sentence of the article you’d forgotten the first? Intel only sold one family of XScale to Marvell, they’re all ARM based. And I was completely aware of the sale of the PXA family to Marvell, that’s why I said “the family of XScale that would actually end up in phones got sold to Marvell”. Some of the Wikipedia references insinuate that Intel sold all of the XScale business off, but those articles were written before the sale happened. It also mentions that Intel still is an ARM licensee. ARM currently lists intel as an ARMv7 licensee, for the IXP series. So they’re not really doing much with it, but it’s not quite dead yet.

          • JumpingJack
          • 9 years ago

          There is undoubtedly a new front opening up in the CPU wars as Intel works to try to move into the ARM space and ARM is working to move into the x86 space.

          It is a race from two angles, Intel trying to get down to the power requirments, and ARM trying to move up the performance requirements (to move into Desktop/Laptop/Servers). AMD does not look like it is running anywhere, and their CEO was let go because of it.

          Make no mistake, Intel has competition and this competition is going to give them much more hurt than AMD ever did.

            • shank15217
            • 9 years ago

            Intel can and would buy up any company making arm chips if they need to. Intel has enough IP and manufacturing power to compete directly with ARM and win.

    • anotherengineer
    • 9 years ago

    I wonder if Otellini donated more to charity than Mr.Gates in 2010??

    Hmmmmmmmmmm

      • NeelyCam
      • 9 years ago

      I think that would be impossible… Mr Otellini doesn’t have anywhere near the same amount of money as Mr Gates. One owns a company, the other is merely a (temporary) employee.

        • anotherengineer
        • 9 years ago

        We still could put the salary + bonuses + stock options into a monetary value/income for 2010 and take a percentage donated.

          • NeelyCam
          • 9 years ago

          We could do that for your salary + bonuses + stock options, too, and see how you compare to Mr Gates. Or to Mr Otellini, for that matter.

          I couldn’t touch either.

            • anotherengineer
            • 9 years ago

            I couldn’t touch Bill either, but Otellini I possible could 1 yr. of my life.

            I made (grossed not net) 27k and donated over 1k to charity

            • NeelyCam
            • 9 years ago

            Impressive – kudos on your dedication to charity. I can’t touch you either.

            • BoBzeBuilder
            • 9 years ago

            First help yourself, then help others.

            • NeelyCam
            • 9 years ago

            That’s the American Way.

            • anotherengineer
            • 9 years ago

            lolz

            I’m Canadian, also the reason why I can’t afford Intel lol, although I do have a discrete pcie Pro 1000 PT netowrk card.

            • anotherengineer
            • 9 years ago

            It was 2008 when the economy took a beating, also the year I got married and laid off. Instead of making those silly little nut/candy thank you things, I made a donation to the Canadian Cancer Society instead (wife’s idea)

            Now it’s time to help myself, time to goto the USA and steal a job from an Amercian 😉 strange how an engineering degree gets me south of the border easier due to something in the free trade agreement?!

            • NeelyCam
            • 9 years ago

            Welcome! I think hiring is picking up now; tech downturn seems to be behind us.

      • ludi
      • 9 years ago

      Which would prove what, exactly?

        • anotherengineer
        • 9 years ago

        It would prove who is more generous.

          • NeelyCam
          • 9 years ago

          This is silly. Everybody knows Mr Gates has decided to donate a significant portion of his wealth to make the world a better place. Because of that, he could be considered something of a saint.

          Your argument somehow seems to be to that if Mr Otellini doesn’t reach the same donation/wealth ratio, he’s somehow evil. That’s just stupid. I would bet 95+% of all tech CEOs are below that treshold. Also, I would bet that Mr Gates – after all those donations – still keeps much more wealth to himself than 95+% of all tech CEOs.

          • ludi
          • 9 years ago

          I still don’t see what that has to do with anything.

    • NeelyCam
    • 9 years ago

    This is for those who claimed 32nm is so horribly expensive… Still feel that way?

      • NeelyCam
      • 9 years ago

      -5, but no comments or arguments. Pathetic.

      Maybe people should acknowledge that they were wrong, instead of hiding behind their thumbs

        • flip-mode
        • 9 years ago

        Sometimes a post is so lame it doesn’t merit more than a thumb. I’d say your “this is for those” post is a perfect example of such lameness and merits nothing more than thumbs, really.

          • NeelyCam
          • 9 years ago

          Got it, thanks.

            • flip-mode
            • 9 years ago

            Heh, no offense intended, just sayin….

    • Buzzard44
    • 9 years ago

    What the heck? Intel down 1% so far today. For the past 3 quarters, Intel has announced all-time record profits, awesome margins, and then proceeds to drop in share price after the announcement that it’s financially pwning. Grrr….

      • NeelyCam
      • 9 years ago

      People are following idiot analysts who think Intel has nothing to offer for cell phones and tablets. Maybe that attitude will change when WMC kicks off in a few weeks.

      EDIT: it’s “MWC” not “WMC”. [i<]Sometimes[/i<] I'm an idiot

        • Meadows
        • 9 years ago

        Are you actually paid to do all this trolling?

          • NeelyCam
          • 9 years ago

          I wish – that would be my dream job.

      • CasbahBoy
      • 9 years ago

      Ideally, the stock market constantly adjust share prices according to ‘projected instantaneous value.’ So the stock price multiplied by the number of stocks is supposedly the value of the company in question. Whenever real hard numbers are released, the stock readjusts to fit those numbers as of the day those numbers are current/released.

      Their stock price dropped because the market was overvaluing Intel about 1% over what Intel has shown their worth to be.

      I used terms like ‘ideally’ and ‘supposedly’ intentionally :/

      • sweatshopking
      • 9 years ago

      same with microsoft, and they have flat stock.

      • cygnus1
      • 9 years ago

      [quote<] Looking at the ongoing quarter, Intel expects revenue to fall within the rather broad range of $11.1 to $11.9 million, with gross margin to equal 62-66%. As for the ongoing calendar year, Intel is predicting its gross margin will be around 63-67%. [/quote<] even if it's cyclical, wall street doesn't like stuff like that

      • sluggo
      • 9 years ago

      The mantra of the stock market is “buy on the rumor, sell on the news”. Analysts have been predicting good numbers for Intel for some time, and buyers have stepped in, pushing the price up in the past quarters. When the actuals hit, most of the players know that others will read the good news and buy some shares. That’s when the folks who bought will sell their shares, often driving prices down a bit.

    • blastdoor
    • 9 years ago

    According to Yahoo, Intel’s P/E of about 11 is a little lower than Microsoft’s of about 12.

    Meanwhile, Google has a P/E of 25 and Apple has a P/E of 23.

    Looks like “the market” is much more optimistic about Google and Apple’s potential for future growth than about Intel and Microsoft’s potential for future growth.

    I can’t say I blame the market for thinking that.

      • khands
      • 9 years ago

      Agreed, Apple and Google are pushing forward into more emerging markets than Intel and Microsoft (not that they aren’t trying to head that way too, just being slow about it).

        • NeelyCam
        • 9 years ago

        Everybody keeps forgetting the cell phone business.

          • dpaus
          • 9 years ago

          Including Intel 🙂

            • NeelyCam
            • 9 years ago

            Touche!

          • derFunkenstein
          • 9 years ago

          I disagree. I’m pretty sure that’s part of why Apple and Google’s P/E ratio is so much higher. That’s where the growth is, and the market knows it.

    • Firestarter
    • 9 years ago

    Here’s to hoping that Bulldozer helps drive Intel’s margins down.

      • dpaus
      • 9 years ago

      As long as consumer prices are competitive, I have no problem with them making as much margin as they can – that allows them to pour more into R&D for future products.

        • shank15217
        • 9 years ago

        Without competition, Intel will stop innovating for sure. Right now AMD has nothing in the desktop space and thier server product margins are too low. Mangy-Core is competitive but its a beast.

          • insulin_junkie72
          • 9 years ago

          Even if AMD closed up shop tomorrow, can Intel really afford to stop innovating?

          While tablets/smartphones/what-not may not be PC-replacements for many/most here now and in the future, that’s certainly not true for everyone (perhaps even most?), and those would be lost sales for Intel if they decided to pull a Rip Van Winkle.

          Is AMD even Intel’s biggest future threat anymore?

            • shank15217
            • 9 years ago

            Im sorry but the desktop and laptop market has yet to disappear and I am yet to see a single person try to do serious work on a tablet. The only thing the tablet market proves is that most users spend their days on fb and twitter. These devices with certainly take away the casual user but as they are, they will fill in as a second or a third device. Without real competition in the high performance microprocessor market Intel will slow down its product refreshes to a crawl, after all their only fear is to lose market share, and without AMD around they get the last 15-18% of the market.

            • insulin_junkie72
            • 9 years ago

            That’s the thing – I’m not saying the desktop/laptop market will disappear, just shrink.

            Most people don’t do “serious work” on their PCs, and unlike just a few short years ago, the PC’s no longer the only game in town for web browsing, casual gaming, and such – and things are happening quick on that front.

            I don’t think Intel would be really happy losing the very large mainstream sector.

            • shank15217
            • 9 years ago

            Sure the desktop market is going to shrink but by how much? How much of Intel’s revenue comes from consumer laptops and casual users? I dont think this market is as big as it being portrayed. Desktops aren’t around because they are bulky, you know people still use tables and chairs, there is an ergonomic reason to use a desktop, a larger monitor or two etc. The enthusiast market is large enough for 3 companies to duke it out and even if there is less innovation in games due to consoles, its not going to stop because even consoles will get upgrades and that would surely reset the graphics standard.

            • Sylak
            • 9 years ago

            I agree look at the low power (netbook)Cpu market, AMD didn’t have nothing to compete with the Atom, intel was the only choice in that slice of CPU market, and frankly ATOM suck very much. a in order x86 cpu. come on.
            Intel is a HUGE compagny first and a chip maker second, any compagny first concern is getting the most money out of your pocket, if AMD dies, intel will let their cpu become craPU. that’s one of the reason i only buy AMD, ( intel cpu and excellent one no question about it) they do good chip for the price point, competition is vital to any market,
            their goal is not to make CPU,, their goal is to make MONEY making CPU.

    • kamikaziechameleon
    • 9 years ago

    That my friends in money!

    MONEY MONEY MONEY……MOONNEEEYYYYY!!!!!!!!!!!!!!!!!!!!

      • My Johnson
      • 9 years ago

      Ain’t doing them any good. They bought back 1.5 billion share and raised the dividend. Stock price remains flat however.

        • esterhasz
        • 9 years ago

        With the current interest rates, 16 cents a share is actually better than many savings accounts…

        • blastdoor
        • 9 years ago

        Buying back shares and paying dividends seems to indicate a lack of ideas for what they can do with their money. Not that they are unique in that problem — there are plenty of tech giants with massive hordes of cash earning virtually zero interest and it seems that managements can’t figure out any productive way to invest the money.

          • NeelyCam
          • 9 years ago

          Intel announced a massive increase in capital expenditure (22nm fabs). Obviously they have plenty of ideas on how to invest their money.

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