Intel Releases Q4 Earnings Numbers
- By Scott Bekker
- January 16, 2001
In an earnings conference call held after the close of the
market, Intel Corp.
announced that while flat with Q3, fourth quarter revenue
was $8.7 billion, up 6 percent over 1999. Total revenue for 2000 was $33.7
billion, up 15 percent from 1999.
While Intel executives expressed hope for overall growth for
2001 in the conference call, they were tempered with realism. The outlook is
grim for Q1 of 2001, with predictions of a 15 percent drop in total revenue for
the first quarter.
Andy Bryant, chief financial officer at Intel, announced
several cost cutting measures designed to offset the downturn, including a
hiring freeze and the closing of a manufacturing facility in Puerto Rico.
Net income in 2000 was $10.5 billion, up 44 percent from
1999. Earnings per share were up $1.51, 44 percent from $1.05 in 1999.
Paul Otellini, executive vice president and manager of the
Intel Architecture Group, spoke on the continuing development of .18 micron,
.13 micron, and new 300 millimeter (mm) chipset technologies as Intel’s
priorities in research and development in 2001. Additionally, he cited the
success of the Pentium 4 and Itanium processors as reasons for Intel’s growth
in the fourth quarter.
The company’s goals, according to Bryant and Otellini, are
to offset the negative outlook for Q1 with controlled spending and establishing
a stronger presence for the Pentium 4 and McKinley, the follow-on to Itanium.
Otellini foresees a “seasonal” second half of 2001, which they expect to offset
the difficult first quarter.
In addition, Otellini noted that the China and Asia/Pacific
markets were strong domestically, but declined in export revenues. “As goes the
U.S., so goes the rest of the world in IT spending,” he said, regarding his
forecast for next year’s numbers in those markets. – Isaac Slepner
Scott Bekker is editor in chief of Redmond Channel Partner magazine.