Intel reports 24% profit increase year-on-year
Revenue was up $8.5 billion, company paid out dividends of $3.5 billion
Intel Corporation has reported full year revenue of $43.6 billion, up $8.5 billion year-on-year. This represents a 24% increase in profits.
The company generated approximately $16.7 billion in cash from operations and paid out dividends of $3.5 billion.
In its fourth-quarter results, Intel posted revenue of $11.5 billion. Operating income during this quarter was $4.3 billion, with a net income of $3.4 billion.
"2010 was the best year in Intel's history. We believe that 2011 will be even better," said Paul Otellini, Intel president and CEO.
Intel's PC Client Group revenue is up 21% year-on-year, while their Data Center Group Revenue is up 35%.
Other Intel architecture group revenue is up 27%, and Intel Atom microprocessor and chipset revenue of $1.6 billion is up 8%.
Intel has a gross margin of 66%, up 10 percentage points as compared to 2009.
The company's full-year capital spending was $5.2 billion, consistent with the company's expectation.
Intel used $1.5 billion to repurchase 70 million shares of common stock.
In the fourth quarter 2010 PC Client Group revenue was flat, while Data Center Group revenue was up 15%, other Intel architecture group was also flat, and Intel Atom microprocessor and chipset revenue of $391 million flat, all sequentially.
The average selling price (ASP) for microprocessors was slightly up sequentially.
Intel's Gross margin for Q4 2010 was 67.5%, slightly above the company's expectation.
R&D plus MG&A spending of $3.4 billion was higher than the company's expectation.
The net gain of $140 million for equity investments and interest and other was better that the company's expectation.
The effective tax rate was 24%, lower than the company's expectation of 31% primarily due to the retroactive reinstatement of the US R&D tax credit.
Looking ahead, Intel expects revenue of $11.5 billion, plus or minus $400 million in Q1 2011 with a gross margin percentage of 64%, plus or minus a couple percentage points.
For the full year of 2011, the company is expecting a gross margin percentage of 65%, plus or minus a few percentage points.