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April 18 2014

Chip Shot: Intel-based ASUS ZenFone Launches in Asia

This week, ASUS is launching the new Intel-based ASUS ZenFone line of smartphones in China, Taiwan and across South East Asia. The new ZenFone series delivers stylish and affordable Android phones in 4″, 5″ and 6″sizes, with multiple color choices. ZenFone-4.jpg Packed with features, each ZenFone boasts the great performance and battery life of the Intel® Atom™ processor Z2580. Read more at the Technology@Intel blog.

April 17 2014

Chip Shot: Intel Survey Finds Americans Are Stifling Creativity on Outdated Computing Devices

Americans are keeping their old technology devices long after they are useful, according to an Intel survey conducted by TNS to explore digital behavior. One in four Americans keep outdated technology devices because they contain important information…

April 15 2014

Intel Reports First-Quarter Revenue of $12.8 Billion Operating Income of $2.5 Billion, up 1 Percent Year-over-Year

  • PC Client Group revenue of $7.9 billion, down 1 percent year-over-year
  • Data Center Group revenue of $3.1 billion, up 11 percent year-over-year
  • Net Income of $1.9 billion, down 5 percent year-over-year
  • EPS of 38 cents, down 5 percent year-over-year

SANTA CLARA, Calif., April 15, 2014 — Intel Corporation today reported first-quarter revenue of $12.8 billion, operating income of $2.5 billion, net income of $1.9 billion and EPS of 38 cents. The company generated approximately $3.5 billion in cash from operations, paid dividends of $1.1 billion, and used $545 million to repurchase 22 million shares of stock.

“In the first quarter we saw solid growth in the data center, signs of improvement in the PC business, and we shipped 5 million tablet processors, making strong progress on our goal of 40 million tablets for 2014,” said Intel CEO Brian Krzanich. “Additionally, we demonstrated our further commitment to grow in the enterprise with a strategic technology and business collaboration with Cloudera, we introduced our second-generation LTE platform with CAT6 and other advanced features, and we shipped our first Quark products for the Internet of Things.”

Q1 Key Business Unit Trends

  • PC Client Group revenue of $7.9 billion, down 8 percent sequentially and down 1 percent year-over-year.
  • Data Center Group revenue of $3.1 billion, down 5 percent sequentially and up 11 percent year-over-year.
  • Internet of Things Group revenue of $482 million, down 10 percent sequentially and up 32 percent year-over-year.
  • Mobile and Communications Group revenue of $156 million, down 52 percent sequentially and down 61 percent year-over-year.
  • Software and services operating segments revenue of $553 million, down 6 percent sequentially and up 6 percent year-over-year.

Financial Comparison
Quarterly
Q1 2014 Q4 2013 vs. Q4 2013
Revenue $12.8 billion $13.8 billion down 8%
Gross Margin 59.7% 62.0% down 2.3 pts.
R&D and MG&A $4.9 billion $4.8 billion up 1%
Operating Income $2.5 billion $3.5 billion down 29%
Tax Rate 27.7% 26.1% up 1.6%
Net Income $1.9 billion $2.6 billion down 26%
Earnings Per Share 38 cents 51 cents down 25%

Business Outlook

Intel’s Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures, strategic investments and other significant transactions that may be completed after April 15.

Q2 2014

  • Revenue: $13.0 billion, plus or minus $500 million.
  • Gross margin percentage: 63 percent, plus or minus a couple of percentage points.
  • R&D plus MG&A spending: approximately $4.8 billion.
  • Restructuring and asset impairment charges: approximately $100 million.
  • Amortization of acquisition-related intangibles: approximately $75 million.
  • Impact of equity investments and interest and other: approximately $75 million.
  • Depreciation: approximately $1.9 billion.

Full-Year 2014

  • Revenue: approximately flat, unchanged from prior expectations.
  • Gross margin percentage: 61 percent, plus or minus a few percentage points, 1 percentage point higher than prior expectations.
  • R&D plus MG&A spending: $18.9 billion, plus or minus $200 million, higher than prior expectations of $18.6 billion.
  • Amortization of acquisition-related intangibles: approximately $300 million, unchanged from prior expectations.
  • Depreciation: approximately $7.4 billion, unchanged from prior expectations.
  • Tax rate: approximately 27 percent for each of the remaining quarters of the year.
  • Full-year capital spending: $11.0 billion, plus or minus $500 million, unchanged from prior expectations.

For additional information regarding Intel’s results and Business Outlook, please see the CFO commentary at: www.intc.com/results.cfm.

Status of Business Outlook

Intel’s Business Outlook is posted on intc.com and may be reiterated in public or private meetings with investors and others. The Business Outlook will be effective through the close of business on June 13 unless earlier updated; except that the Business Outlook for amortization of acquisition-related intangibles, impact of equity investments and interest and other, restructuring charges, and tax rate,  will be effective only through the close of business on April 22. Intel’s Quiet Period will start from the close of business on June 13 until publication of the company’s second-quarter earnings release, scheduled for July 15, 2014. During the Quiet Period, all of the Business Outlook and other forward-looking statements disclosed in the company’s news releases and filings with the SEC should be considered as historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.

Risk Factors

The above statements and any others in this document that refer to plans and expectations for the second quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” “should” and their variations identify forward-looking statements. Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements. Many factors could affect Intel’s actual results, and variances from Intel’s current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be important factors that could cause actual results to differ materially from the company’s expectations.

  • Demand for Intel’s products is highly variable and, in recent years, Intel has experienced declining orders in the traditional PC market segment. Demand could be different from Intel’s expectations due to factors including changes in business and economic conditions; consumer confidence or income levels; customer acceptance of Intel’s and competitors’ products; competitive and pricing pressures, including actions taken by competitors; supply constraints and other disruptions affecting customers; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers.
  • Intel operates in highly competitive industries and its operations have high costs that are either fixed or difficult to reduce in the short term.
  • Intel’s gross margin percentage could vary significantly from expectations based on capacity utilization; variations in inventory valuation, including variations related to the timing of qualifying products for sale; changes in revenue levels; segment product mix; the timing and execution of the manufacturing ramp and associated costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; and product manufacturing quality/yields. Variations in gross margin may also be caused by the timing of Intel product introductions and related expenses, including marketing expenses, and Intel’s ability to respond quickly to technological developments and to introduce new products or incorporate new features into existing products, which may result in restructuring and asset impairment charges.
  • The tax rate expectation is based on current tax law and current expected income. The tax rate may be affected by the jurisdictions in which profits are determined to be earned and taxed; changes in the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits with various tax authorities, including payment of interest and penalties; and the ability to realize deferred tax assets.
  • Gains or losses from equity securities and interest and other could vary from expectations depending on gains or losses on the sale, exchange, change in the fair value or impairments of debt and equity investments; interest rates; cash balances; and changes in fair value of derivative instruments.
  • Intel’s results could be affected by adverse economic, social, political and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates.
  • Intel’s results could be affected by the timing of closing of acquisitions, divestitures and other significant transactions.
  • Intel’s results could be affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust, disclosure and other issues, such as the litigation and regulatory matters described in Intel’s SEC reports. An unfavorable ruling could include monetary damages or an injunction prohibiting Intel from manufacturing or selling one or more products, precluding particular business practices, impacting Intel’s ability to design its products, or requiring other remedies such as compulsory licensing of intellectual property.

A detailed discussion of these and other factors that could affect Intel’s results is included in Intel’s SEC filings, including the company’s most recent reports on Form 10-K.

Earnings Webcast

Intel will hold a public webcast at 2 p.m. PDT today on its Investor Relations website at www.intc.com. A webcast replay and MP3 download will also be available on the site.

Intel plans to report its earnings for the second quarter of 2014 on July 15, 2014. Immediately following the earnings report, the company plans to publish a commentary by Stacy J. Smith, Executive Vice President and Chief Financial Officer, at www.intc.com/results.cfm. A public webcast of Intel’s earnings conference call will follow at 2 p.m. PDT at www.intc.com.

About Intel
Intel (NASDAQ: INTC) is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s computing devices. Additional information about Intel is available at newsroom.intel.com and blogs.intel.com.

Intel, the Intel logo, Atom and Core are trademarks of Intel Corporation in the United States and other countries.

*Other names and brands may be claimed as the property of others.

April 15 2014

Chip Shot: New Release of Intel IT Mobile App Adds Infrastructure Services

Download Intel IT’s newly released ‘Infrastructure Services’ edition of the Intel IT Business Review mobile app. Connect with Intel IT on topics like big data and analytics, cloud and data center, innovation, mobility and more. Get the mobile app on your device and receive instant access to rich multimedia content from an extensive portfolio of articles, blogs, IT@Intel white papers, podcast and videos.

April 10 2014

Intel Honors Eight Companies with Supplier Continuous Quality Improvement Award

SANTA CLARA, Calif., April 10, 2014 – Intel Corporation today announced the eight winners of the company’s most prestigious award for suppliers, the Supplier Continuous Quality Improvement (SCQI) award. These companies set themselves apart from the thousands of suppliers that work with Intel by demonstrating industry-leading commitment across all critical focus areas on which they are measured: quality, cost, availability, technology, customer service, labor and ethics systems, and environmental sustainability.

This honor, which recognizes outstanding commitment to broad performance excellence, distinguishes these suppliers as truly world class within Intel’s greater supply chain. This elite group of top-performing suppliers is truly exceptional and makes major contributions to Intel’s technology leadership, affordability and customer responsiveness. Providing products and services deemed essential to Intel’s business success, the 2013 winners help Intel “Deliver the Present and Create the Future,” which is the theme of the ceremony tonight in Santa Clara, Calif., where these suppliers will be honored.

“Intel is pleased to recognize these truly exceptional suppliers for their outstanding performance and commitment in 2013,” said William Holt, executive vice president and general manager of Intel’s Technology and Manufacturing Group. “Their world-class velocity and innovation define them as role models for continuous improvement, and we appreciate their efforts across all critical focus areas this year.”

The SCQI award is part of Intel’s SCQI program, which encourages Intel’s key suppliers to strive for best-in-class levels of excellence and continuous improvement. To qualify for SCQI status, suppliers must exceed the highest expectations and aggressive performance goals while scoring at least 95 percent on an integrated report card that assesses performance throughout the year. Suppliers must also achieve 90 percent or greater on a challenging improvement plan and demonstrate outstanding quality and business systems. Additional information about the SCQI program is available at www.intel.com/go/quality.

The SCQI winners provide Intel with the following products or services:

  • Cabot Microelectronics Corporation*: CMP slurries and CMP pads
  • Daewon Semiconductor Packaging Industrial Co. Ltd.*: plastic injection molded shipping tray, BDTR
  • Hitachi High-Technologies Corporation*: dry etching, ashing, metrology and advanced packaging systems
  • JSR Corporation*: advanced photoresists, packaging materials and CMP consumables
  • Moses Lake Industries (Tama Chemical)*: plating, lithography, cleans and reagent chemicals
  • Murata Manufacturing Co. Ltd.*: multilayer ceramic capacitors, inductors and electromagnetic interference components
  • Senju Metal Industry Co. Ltd.*: soldering material (solder sphere, flux, paste, bar, wire)
  • SUMCO Corporation*: 200mm and 300mm epitaxial and polished silicon wafers

About Intel
Intel (NASDAQ: INTC) is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s computing devices. Additional information about Intel is available at newsroom.intel.com and blogs.intel.com.

Intel is a trademark of Intel Corporation in the United States and other countries.

* Other names and brands may be claimed as the property of others.

April 10 2014

Intel Honors 18 Companies with Preferred Quality Supplier and Achievement Awards

SANTA CLARA, Calif., April 10, 2014 – Intel Corporation today announced that 18 companies will receive the 2013 Intel Preferred Quality Supplier (PQS) award, which recognizes commitment to performance excellence and continuous improvement. These companies achieve PQS status by demonstrating industry-leading commitment across all critical focus areas on which they are measured: quality, cost, availability, technology, customer service, labor and ethics systems, and environmental sustainability.

In addition to the PQS award, Intel recognized one supplier with the Supplier Achievement Award, which is a focused recognition for extraordinary accomplishments in one or more key performance areas. This year’s winner was acknowledged for significant contributions to Intel’s success by delivering on challenging volume expectations and for demonstrating robust working hours management and extensive monitoring of its own global supply base. The 2013 PQS and Achievement winners will be honored at a ceremony tonight in Santa Clara, Calif.

“Every year, the world appears faster and more complex. It was especially true last year for supply chain as the market dynamics heightened the pressure on our agility, velocity, affordability and innovation,” said Jacklyn Sturm, vice president, Technology and Manufacturing Group and general manager of Global Sourcing and Procurement at Intel. “We could not be successful without the Intel’s Preferred Quality Supplier Award winners traveling with us, aligning their strategic capabilities and improvement plans to deliver exceptionally strong performance on all fronts, from technology innovations to corporate responsibility. Thank you for your exemplary commitment to your customers.”

“Intel is delighted to recognize our Preferred Quality Suppliers for their industry-leading performance in 2013 in the areas of technology, affordability, velocity and sustainability,” added Robert Bruck, vice president and general manager of Technology Manufacturing Engineering at Intel. “The close collaboration with these suppliers has been one of the crucial factors in enabling Intel to extend our industry-leading silicon, packaging and test technologies, and in enhancing value and responsiveness to our customers.”

The PQS award is part of Intel’s Supplier Continuous Quality Improvement (SCQI) program that encourages suppliers to innovate and continually improve. To qualify for PQS status, suppliers must exceed high expectations and uncompromising performance goals while scoring at least 80 percent on an integrated report card that assesses performance throughout the year. Suppliers must also achieve 80 percent or greater on a challenging continuous improvement plan and demonstrate solid quality and business systems. Additional information about the SCQI program is available at www.intel.com/go/quality.

The PQS winners provide Intel with the following products or services:

  • Applied Materials*: wafer fab capital equipment, mask capital equipment, fab automation SW and services
  • Amkor Technology Inc.*: wafer probe, wafer bump, assembly, final testing
  • ASML*: semiconductor lithography equipment
  • Daifuku Co. Ltd.*: automated transport and storage of WIP
  • Dainippon Screen Mfg. Co. Ltd.*: wafer cleaning and anneal equipment and services for semiconductor manufacturing
  • Fujifilm Electronic Materials*: formulated chemicals, developers, precursors, slurries and advanced photoresists
  • Hitachi Kokusai Electric Inc.*: deposition and thermal film manufacturing equipment
  • KLA-Tencor Corporation*: process control capital equipment and services
  • Mitsubishi Gas Chemical Company Inc.*: chemicals for semiconductor device manufacturing
  • Nikon Corporation*: semiconductor lithography systems for technology development and high-volume manufacturing
  • Shin Etsu Handotai Co. Ltd.*: silicon wafers
  • Siliconware Precision Industries Co. Ltd.*: semiconductor assembly and test services
  • Siltronic AG*: polished and epitaxial silicon wafers
  • Taiyo Yuden Co. Ltd.*: ceramic capacitors, inductors, filters
  • Tokyo Electron Limited*: coater developers, dry etch, wet etch, thermal systems and test systems
  • Tosoh Quartz Inc.*: quartzware for semiconductor wafer processing equipment
  • Tosoh SMD Inc.*: sputtering targets for physical vapor deposition
  • Veolia Environnement*: waste management services

The Supplier Achievement Award winner is:

  • ModusLink Global Solutions Inc.*: integration and supply chain services for Intel customer products

About Intel
Intel (NASDAQ: INTC) is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s computing devices. Additional information about Intel is available at newsroom.intel.com and blogs.intel.com.

Intel is a trademark of Intel Corporation in the United States and other countries.

* Other names and brands may be claimed as the property of others.

April 10 2014

Intel Honors 18 Companies with Preferred Quality Supplier and Achievement Awards

SANTA CLARA, Calif., April 10, 2014 – Intel Corporation today announced that 18 companies will receive the 2013 Intel Preferred Quality Supplier (PQS) award, which recognizes commitment to performance excellence and continuous improvement. These companies achieve PQS status by demonstrating industry-leading commitment across all critical focus areas on which they are measured: quality, cost, availability, technology, customer service, labor and ethics systems, and environmental sustainability.

In addition to the PQS award, Intel recognized one supplier with the Supplier Achievement Award, which is a focused recognition for extraordinary accomplishments in one or more key performance areas. This year’s winner was acknowledged for significant contributions to Intel’s success by delivering on challenging volume expectations and for demonstrating robust working hours management and extensive monitoring of its own global supply base. The 2013 PQS and Achievement winners will be honored at a ceremony tonight in Santa Clara, Calif.

“Every year, the world appears faster and more complex. It was especially true last year for supply chain as the market dynamics heightened the pressure on our agility, velocity, affordability and innovation,” said Jacklyn Sturm, vice president, Technology and Manufacturing Group and general manager of Global Sourcing and Procurement at Intel. “We could not be successful without the Intel’s Preferred Quality Supplier Award winners traveling with us, aligning their strategic capabilities and improvement plans to deliver exceptionally strong performance on all fronts, from technology innovations to corporate responsibility. Thank you for your exemplary commitment to your customers.”

“Intel is delighted to recognize our Preferred Quality Suppliers for their industry-leading performance in 2013 in the areas of technology, affordability, velocity and sustainability,” added Robert Bruck, vice president and general manager of Technology Manufacturing Engineering at Intel. “The close collaboration with these suppliers has been one of the crucial factors in enabling Intel to extend our industry-leading silicon, packaging and test technologies, and in enhancing value and responsiveness to our customers.”

The PQS award is part of Intel’s Supplier Continuous Quality Improvement (SCQI) program that encourages suppliers to innovate and continually improve. To qualify for PQS status, suppliers must exceed high expectations and uncompromising performance goals while scoring at least 80 percent on an integrated report card that assesses performance throughout the year. Suppliers must also achieve 80 percent or greater on a challenging continuous improvement plan and demonstrate solid quality and business systems. Additional information about the SCQI program is available at www.intel.com/go/quality.

The PQS winners provide Intel with the following products or services:

  • Applied Materials*: wafer fab capital equipment, mask capital equipment, fab automation SW and services
  • Amkor Technology Inc.*: wafer probe, wafer bump, assembly, final testing
  • ASML*: semiconductor lithography equipment
  • Daifuku Co. Ltd.*: automated transport and storage of WIP
  • Dainippon Screen Mfg. Co. Ltd.*: wafer cleaning and anneal equipment and services for semiconductor manufacturing
  • Fujifilm Electronic Materials*: formulated chemicals, developers, precursors, slurries and advanced photoresists
  • Hitachi Kokusai Electric Inc.*: deposition and thermal film manufacturing equipment
  • KLA-Tencor Corporation*: process control capital equipment and services
  • Mitsubishi Gas Chemical Company Inc.*: chemicals for semiconductor device manufacturing
  • Nikon Corporation*: semiconductor lithography systems for technology development and high-volume manufacturing
  • Shin Etsu Handotai Co. Ltd.*: silicon wafers
  • Siliconware Precision Industries Co. Ltd.*: semiconductor assembly and test services
  • Siltronic AG*: polished and epitaxial silicon wafers
  • Taiyo Yuden Co. Ltd.*: ceramic capacitors, inductors, filters
  • Tokyo Electron Limited*: coater developers, dry etch, wet etch, thermal systems and test systems
  • Tosoh Quartz Inc.*: quartzware for semiconductor wafer processing equipment
  • Tosoh SMD Inc.*: sputtering targets for physical vapor deposition
  • Veolia Environment*: waste management services

The Supplier Achievement Award winner is:

  • ModusLink Global Solutions Inc.*: integration and supply chain services for Intel customer products

About Intel
Intel (NASDAQ: INTC) is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s computing devices. Additional information about Intel is available at newsroom.intel.com and blogs.intel.com.

Intel is a trademark of Intel Corporation in the United States and other countries.

* Other names and brands may be claimed as the property of others.

April 09 2014

Chip Shot: Forbes Names Intel One of World’s Most Reputable Companies

Forbes has named Intel as one of the most reputable companies in the world in its annual World’s Most Reputable Companies ranking, which published today. Intel ranked #12 on the 2014 list. Forbes’ World’s Most Reputable Companies ranking is based on the annual Global RepTrak* 100 study from the Reputation Institute, which identifies the 100 companies that have successfully established strong international reputations. Intel has been included on the list since 2008, including being ranked #11 in 2013.

April 09 2014

Chip Shot: Global IoT Day – A Good Day for a Reality Check

The Internet of Things (IoT) has generated excitement and momentum across the world, and Intel is pleased to support Global IoT Day 2014. For IoT to reach its full potential innovators must address critical issues: bringing connectivity and intelligen…

April 08 2014

Chip Shot: Intel, 3M, SGI Reduce Datacenter Cooling Costs by 95 Percent

Today, Intel, 3M and SGI announced the implementation of a fully functional supercomputer that uses two-phase immersion cooling technology that can reduce cooling energy costs by up to 95 percent and reduce water consumption by eliminating municipal w…