Intel Reports Revenue of $55.4 Billion in 2015

By Nathan Kirsch

Intel Reports Full-Year Revenue of $55.4 Billion, Net Income of $11.4 Billion

Reports Record Quarterly Revenue of $14.9 Billion

News Highlights:

  • Record full-year revenue in the Data Center, Internet of Things (IoT) and Non-Volatile Memory Solutions Groups; and record quarterly revenue in the Data Center and IoT Groups
  • As of November, 14nm products made up more than 50 percent of Client Computing Group volume with growing enthusiasm for 6th Generation Intel Core (“Skylake”) processors
  • Announced increase in cash dividend to $1.04-per-share on an annual basis
  • Altera acquisition closed early in the first quarter of 2016, broadening Intels portfolio

Intel Logo

SANTA CLARA, Calif., January 14, 2016 — Intel Corporation today reported full-year revenue of $55.4 billion, operating income of $14.0 billion, net income of $11.4 billion and EPS of $2.33. The company generated approximately $19.0 billion in cash from operations, paid dividends of $4.6 billion and used $3.0 billion to repurchase 96 million shares of stock.

For the fourth quarter, Intel posted revenue of $14.9 billion, operating income of $4.3 billion, net income of $3.6 billion and EPS of 74 cents. The company generated approximately $5.4 billion in cash from operations, paid dividends of $1.1 billion, and used $525 million to repurchase 17 million shares of stock.

Our results for the fourth quarter marked a strong finish to the year and were consistent with expectations, said Brian Krzanich, Intel CEO. Our 2015 results demonstrate that Intel is evolving and our strategy is working. This year, well continue to drive growth by powering the infrastructure for an increasingly smart and connected world.

Full-Year 2015 Business Unit Trends

  • Client Computing Group revenue of $32.2 billion, down 8 percent from 2014.
  • Data Center Group revenue of $16.0 billion, up 11 percent from 2014.
  • Internet of Things Group revenue of $2.3 billion, up 7 percent from 2014.
  • Software and services operating segments revenue of $2.2 billion, down 2 percent from 2014.
  • Non-Volatile Memory Solution Group revenue up 21 percent from 2014.

Q4 Business Unit Trends

  • Client Computing Group revenue of $8.8 billion, up 3 percent sequentially and down 1 percent year-over-year.
  • Data Center Group revenue of $4.3 billion, up 4 percent sequentially and up 5 percent year-overyear.
  • Internet of Things Group revenue of $625 million, up 8 percent sequentially and up 6 percent yearover-year.
  • Software and services operating segments revenue of $543 million

Business Outlook
Intels 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 January 14.

Please note: Our Full-Year 2016 and Q1 2016 Business Outlook includes the expected results of our recently completed acquisition of Altera, an additional week in the first quarter due to 2016 being a 53-week year and a change in the estimated useful lives for our machinery and equipment in our factories from four to five years.

The acquisition of Altera was completed in early fiscal year 2016, which means that the 2016 guidance includes the expected results for the FPGA business. As a result of the Altera acquisition, we have acquisition-related charges that are primarily non-cash. Our guidance for the first quarter and full-year 2016 include both GAAP and non-GAAP estimates.

Status of Business Outlook
Intels 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 March 18 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 January 21. Intels Quiet Period will start from the close of business on March 18 until publication of the companys first-quarter earnings release, scheduled for April 19. During the Quiet Period, all of the Business Outlook and other forward-looking statements disclosed in the companys 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.

Client Computing Group Notebook, Desktop and Tablet Platform Key Drivers

2015 compared to 2014:

  • Notebook platform volumes decreased 9%
  • Notebook platform average selling prices increased 2%
  • Desktop platform volumes decreased 16%
  • Desktop platform average selling prices increased 6%

Q4 2015 compared to Q4 2014:

  • Notebook platform volumes decreased 10%
  • Notebook platform average selling prices increased 6%
  • Desktop platform volumes decreased 9%
  • Desktop platform average selling prices increased 9%
  • Tablet platform volumes of 9 million units decreased 33%

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 worlds computing devices. As a leader in
corporate responsibility and sustainability, Intel also manufactures the world’s first commercially available “conflict-free” microprocessors. Additional information about Intel is available at newsroom.intel.com and blogs.intel.com and about Intel’s conflict-free efforts at conflictfree.intel.com.

See the full Intel Earnings Release here.