APRIL 16--Intel Corp. (Santa Clara, CA; www.intel.com) has announced first-quarter revenues of $6.75 billion, down 6% sequentially and flat year-over-year. First-quarter net income was $915 million, down 13% sequentially and down 2% year-over-year. Earnings per share were $0.14, down 13% sequentially and flat with the first quarter of 2002.
"Our financial performance for the quarter was solid, with our computing-related business performing better than expected and our flash business coming in below expectations," said Craig R. Barrett, Intel chief executive officer. "Two major announcements in the quarter highlight our continued, substantial investment in new products and technology and our strategy of driving the convergence of communications and computing. We introduced Intel Centrino mobile technology that brings integrated wireless capability and longer battery life to a new generation of mobile PCs. We also announced our innovative wireless-Internet-on-a-chip technology, code-named Manitoba, for cell phones. Both of these key products were well received in the marketplace. These types of leadership products, along with the scheduled ramp of our 90-nm process technology in the second half of the year, help to position us well for future growth," he adds.
Revenues in the second quarter are expected to be between $6.4 billion and $7.0 billion. Gross margin percentage for 2003 is expected to be approximately 51%, plus or minus a few points. Expenses (R&D plus MG&A) in the second quarter are expected to be between $2.0 billion and $2.1 billion. Expenses, particularly certain marketing- and compensation-related expenses, vary depending on the level of revenue and profits. R&D spending for 2003 is expected to be approximately $4.0 billion. Capital spending for 2003 is expected to be between $3.5 billion and $3.9 billion.
