SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report: January 12, 1999
(Date of earliest event reported)
INTEL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 0-6217 94-1672743
(State of (Commission File (IRS Employer
incorporation) Number) Identification No.)
2200 Mission College Blvd., Santa Clara, CA 95052-8119
(Address of principal executive offices)
(408) 765-8080
(Registrant's telephone number, including area code)
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Item 5. OTHER EVENTS
5.1 Attached hereto as Exhibit 99.1 and incorporated
by reference herein is financial information for
Intel Corporation for the quarter and the year
ended December 26, 1998 and forward-looking
statements relating to 1999 and the 1st Quarter
of 1999, as presented in a press release of
January 12, 1999.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
(c) Exhibits
99.1 Financial information for Intel Corporation
for the quarter and the year ended December 26,
1998 and forward-looking statements relating to
1999 and the 1st Quarter of 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
INTEL CORPORATION
(Registrant)
Date: January 12, 1999 By: /s/Andy D. Bryant
---------------------------
Andy D. Bryant
Vice President, Chief Financial
Officer and Principal Accounting
Officer
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EXHIBIT 99.1
INTEL REPORTS RECORD QUARTERLY REVENUE,
NET INCOME AND EPS
Twelfth Consecutive Year of Revenue Growth
SANTA CLARA, Calif., Jan.12, 1999 - Intel Corporation set new
quarterly records for revenue, net income, earnings per share and
microprocessor unit shipments, the company said today. Seasonally
strong demand for Intel's P6 micro architecture products in the
second half lifted the company's total 1998 revenue to a new
annual record.
Revenue totaled $26.3 billion in 1998, up 5 percent from the
prior record of $25.1 billion in 1997. Net income was $6.1
billion, down 13 percent from $6.9 billion in 1997. Earnings per
share of $3.45 declined 11 percent from $3.87 per share in 1997.
Record fourth quarter revenue of $7.6 billion was up 17
percent from fourth quarter 1997 revenue of $6.5 billion. Fourth
quarter revenue was up 13 percent from third quarter 1998 revenue
of $6.7 billion.
Record fourth quarter net income of $2.1 billion was up 18
percent from fourth quarter 1997 net income of $1.7 billion. Net
income in the fourth quarter was up 32 percent from third quarter
1998 net income of $1.6 billion.
Record fourth quarter earnings per share of $1.19 increased
21 percent from $0.98 in the fourth quarter of 1997 and rose 34
percent from $0.89 in the third quarter of 1998.
"Intel achieved its 12th consecutive year of revenue growth
in spite of the challenges of a turbulent market in 1998," said
Dr. Craig R. Barrett, president and chief executive officer.
"During the fourth quarter we achieved record revenue in the
Americas, Europe and Asia-Pacific.
"Intel enters 1999 with a first quarter roadmap offering new
products in every segment of the computer market. This quarter we
will launch Pentium(R) III and Pentium III Xeon(TM) processors,
the first products in the next generation of Intel Architecture
microprocessors. On the manufacturing front we will soon begin
the transition to 0.18 micron, the next generation of process
technology.
"The investments of the last year in new product development
and productivity improvement have strengthened the company and
positioned it well for a market that will continue to be
competitive and dynamic," Barrett said.
During the quarter, the company paid its regular quarterly
cash dividend of $0.04 per share. The dividend was paid on Dec.
1, 1998, to stockholders of record on Nov. 7, 1998.
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This is an increase from the previous $0.03 per share quarterly
dividend. Intel has paid a regular quarterly cash dividend for
six years, and the dividend has been increased in each of the past
five years.
In the fourth quarter, the company repurchased a total of
16.5 million shares of common stock at a cost of $1.5 billion.
For the full year, the company repurchased 80.9 million shares at
a cost of $6.7 billion. Since the program began in 1990, the
company has repurchased 294.3 million shares at a total cost of
$13.6 billion.
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INTEL CORPORATION
CONSOLIDATED SUMMARY FINANCIAL STATEMENTS
(In millions, except per share amounts)
INCOME Three Months Twelve Months
Ended Ended
----------------- -----------------
Dec.26, Dec.27, Dec.26, Dec.27,
1998 1997 1998 1997
------- ------- ------- -------
<S> <C> <C> <C> <C>
NET REVENUE $ 7,614 $ 6,507 $26,273 $25,070
------- ------- ------- -------
Cost of sales 3,176 2,691 12,144 9,945
Research and development 674 605 2,509 2,347
Marketing, general and
administrative 928 818 3,076 2,891
Purchased in-process
research and development --- --- 165 ---
------- ------- ------- -------
Operating costs and
expenses 4,778 4,114 17,894 15,183
------- ------- ------- -------
OPERATING INCOME 2,836 2,393 8,379 9,887
Interest and other 244 201 758 772
------- ------- ------- -------
INCOME BEFORE TAXES 3,080 2,594 9,137 10,659
Income taxes 1,016 851 3,069 3,714
------- ------- ------- -------
NET INCOME $ 2,064 $ 1,743 $ 6,068 $ 6,945
======= ======= ======= =======
BASIC EARNINGS PER SHARE $ 1.24 $ 1.07 $ 3.64 $ 4.25
======= ======= ======= =======
DILUTED EARNINGS PER SHARE $ 1.19 $ 0.98 $ 3.45 $ 3.87
======= ======= ======= =======
COMMON SHARES OUTSTANDING 1,663 1,633 1,668 1,635
COMMON SHARES
ASSUMING DILUTION 1,739 1,785 1,759 1,795
</TABLE>
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<TABLE>
BALANCE SHEET At At At
Dec.26, Sep.26, Dec.27,
1998 1998 1997
------- ------- -------
<S> <C> <C> <C>
CURRENT ASSETS
Cash and short-term
investments $ 7,626 $ 8,687 $ 9,927
Accounts receivable 3,527 3,636 3,438
Inventories:
Raw materials 206 258 255
Work in process 795 879 928
Finished goods 581 441 514
------- ------- -------
1,582 1,578 1,697
------- ------- -------
Deferred tax assets and other 740 812 805
------- ------- -------
Total current assets 13,475 14,713 15,867
Property, plant and
equipment, net 11,609 11,863 10,666
Long-term investments 5,365 1,789 1,839
Other assets 1,022 1,023 508
------- ------- -------
TOTAL ASSETS $31,471 $29,388 $28,880
======= ======= =======
CURRENT LIABILITIES
Short-term debt $ 159 $ 192 $ 322
Accounts payable and
accrued liabilities 4,081 3,795 4,017
Deferred income on
shipments to distributors 606 471 516
Income taxes payable 958 798 1,165
------- ------- -------
Total current liabilities 5,804 5,256 6,020
LONG-TERM DEBT 702 583 448
DEFERRED TAX LIABILITIES 1,387 1,162 1,076
PUT WARRANTS 201 588 2,041
STOCKHOLDERS' EQUITY
Common Stock and capital
in excess of par value 4,822 4,775 3,311
Retained earnings 18,555 17,024 15,984
------- ------- -------
Total stockholders' equity 23,377 21,799 19,295
------- ------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $31,471 $29,388 $28,880
======= ======= =======
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