Intel posts record revenues for 1997 and Q4

Intel has posted record fourth quarter and 1997 revenues and per share earnings, citing rapid market acceptance of its Pentium II and Pentium MMX processors. The chipmaker posted revenue of $US25.1 billion in 1997, up from $20.8 billion in 1996. Net income was $6.9 billion or $3.87 per share, up from $5.2 billion or $2.90 per share in 1996. In the fourth quarter of fiscal 1997, ended Dec. 27, Intel reported revenue of $6.5 billion up from $6.4 billion for the fourth quarter of 1996. Net income was $1.7 billion for the fourth quarter, down from $1.9 billion for the comparable period a year ago. Earnings per share in the fourth quarter were 98 cents, down from $1.06 in the final quarter of 1996, but beating First Call's consensus analyst estimate of 90 cents per share.

Intel has posted record fourth quarter and 1997 revenues and per share earnings, citing rapid market acceptance of its Pentium II and Pentium MMX processors.

The chipmaker posted revenue of $US25.1 billion in 1997, up from $20.8 billion in 1996. Net income was $6.9 billion or $3.87 per share, up from $5.2 billion or $2.90 per share in 1996.

In the fourth quarter of fiscal 1997, ended Dec. 27, 1997, Intel reported revenue of $6.5 billion up from $6.4 billion for the fourth quarter of 1996. Net income was $1.7 billion for the fourth quarter, down from $1.9 billion for the comparable period a year ago.

Earnings per share in the fourth quarter were 98 cents, down from $1.06 in the final quarter of 1996, but beating First Call's consensus analyst estimate of 90 cents per share.

Intel expects revenue for the first quarter of 1998 to be flat with fourth quarter revenue. In addition Intel expects gross margin percentage in the first quarter to be down a few points as the result of purchased components used on the SEC cartridge for the Pentium II processor.

Spending for research and development is expected to be approximately $2.8 billion for 1998, up from $2.3 billion in 1997, Intel said.

The company also said that its unit shipments of microprocessors set a record in the fourth quarter, while chipset units were down in the fourth quarter from the third quarter of 1997 and motherboard units shipped in the fourth quarter were up from the third quarter.

On the other hand embedded processor and microcontroller units shipped were flat with the third quarter, while flash memory units shipped during the quarter were up from the third quarter.

In the fourth quarter the company generated most of its revenues in the Americas (45%, up from 42% in the same quarter 1996), followed by Europe (30%, up from 28% in the 1996 quarter) and 17%in Asia-Pacific (down from 20% in the 1996 quarter and from 19% in the third quarter of 1997). Japan contributed 8% of revenues, down from 10% in the 1996 quarter.

Percent of Intel's 1997 revenue by geographic area

Year Ended Year Ended Year Ended

12/30/95 12/28/96 12/27/97

Americas 49 42 44

Europe 28 28 27

Asia-Pacific 12 18 19

Japan 11 12 10

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