January 30, 2025
News Summary
SANTA CLARA, Calif., January 30, 2025 --( BUSINESS WIRE )--Intel Corporation today reported fourth-quarter and full-year 2024 financial results.
"The fourth quarter was a positive step forward as we delivered revenue, gross margin and EPS above our guidance," said Michelle Johnston Holthaus, interim co-CEO of Intel and CEO of Intel Products. "Our renewed focus on strengthening and simplifying our product portfolio, combined with continued progress on our process roadmap, is positioning us to better serve the needs of our customers. Dave and I are taking actions to enhance our competitive position and create shareholder value."
"The cost reduction plan we announced last year to improve the trajectory of the company is having an impact," said David Zinsner, interim co-CEO and chief financial officer of Intel. "We are fostering a culture of efficiency across the business while driving toward greater returns on our invested capital and improved profitability. Our Q1 outlook reflects seasonal weakness magnified by macro uncertainties, further inventory digestion and competitive dynamics. We will remain highly focused on execution to build on our progress and unlock value."
Q4 2024 Financial Results
|
|
GAAP |
|
Non-GAAP |
||||
|
|
Q4 2024 |
Q4 2023 |
vs. Q4 2023 |
|
Q4 2024 |
Q4 2023 |
vs. Q4 2023 |
|
Revenue ($B) |
$14.3 |
$15.4 |
down 7% |
|
|
|
|
|
Gross margin |
39.2% |
45.7% |
down 6.5 ppts |
|
42.1% |
48.8% |
down 6.7 ppts |
|
R&D and MG&A ($B) |
$5.1 |
$5.6 |
down 9% |
|
$4.6 |
$4.9 |
down 6% |
|
Operating margin (loss) |
2.9% |
16.8% |
down 13.9 ppts |
|
9.6% |
16.7% |
down 7.1 ppts |
|
Tax rate |
125.5% |
4.6% |
up 120.9 ppts |
|
13.0% |
13.0% |
— |
|
Net income (loss) attributable to Intel ($B) |
$(0.1) |
$2.7 |
down 105% |
|
$0.6 |
$2.3 |
down 75% |
|
Earnings (loss) per share attributable to Intel—diluted |
$(0.03) |
$0.63 |
down 105% |
|
$0.13 |
$0.54 |
down 76% |
In the fourth quarter, the company generated $3.2 billion in cash from operations.
Full reconciliations between GAAP and non-GAAP measures are provided below.
Full-Year 2024 Financial Results
|
|
GAAP |
|
Non-GAAP |
||||
|
|
2024 |
2023 |
vs. 2023 |
|
2024 |
2023 |
vs. 2023 |
|
Revenue ($B) |
$53.1 |
$54.2 |
down 2% |
|
|
|
|
|
Gross margin |
32.7% |
40.0% |
down 7.3 ppts |
|
36.0% |
43.6% |
down 7.6 ppts |
|
R&D and MG&A ($B) |
$22.1 |
$21.7 |
up 2% |
|
$19.4 |
$19.0 |
up 2% |
|
Operating margin (loss) |
(22.0)% |
0.2% |
down 22.2 ppts |
|
(0.5)% |
8.6% |
down 9.1 ppts |
|
Tax rate |
71.6% |
(119.8)% |
up 191.4 ppts |
|
13.0% |
13.0% |
— |
|
Net income (loss) attributable to Intel ($B) |
$(18.8) |
$1.7 |
n/m* |
|
$(0.6) |
$4.4 |
down 113% |
|
Earnings (loss) per share attributable to Intel—diluted |
$(4.38) |
$0.40 |
n/m* |
|
$(0.13) |
$1.05 |
down 112% |
For the full year, the company generated $8.3 billion in cash from operations and paid dividends of $1.6 billion.
|
* |
Not meaningful |
Business Unit Summary
In October 2022, Intel announced an internal foundry operating model, which took effect in the first quarter of 2024 and created a foundry relationship between its Intel Products business (collectively CCG, DCAI and NEX) and its Intel Foundry business (including Foundry Technology Development, Foundry Manufacturing and Supply Chain, and Foundry Services, formerly IFS). The foundry operating model is designed to reshape operational dynamics and drive greater transparency, accountability, and focus on costs and efficiency. In furtherance of Intel's internal foundry operating model, Intel announced in the third quarter of 2024 its intent to establish Intel Foundry as an independent subsidiary. The company also previously announced its intent to operate Altera ® as a standalone business. Altera was previously included in DCAI's segment results and, beginning in the first quarter of 2024, is included in "all other." As a result of these changes, the company modified its segment reporting in the first quarter of 2024 to align to this new operating model. All prior-period segment data has been retrospectively adjusted to reflect the way the company internally receives information and manages and monitors its operating segment performance starting in fiscal year 2024. There are no changes to Intel’s consolidated financial statements for any prior periods.
|
Business Unit Revenue and Trends |
|
Q4 2024 |
|
vs. Q4 2023 |
|
2024 |
|
vs. 2023 |
||||
|
Intel Products: |
|
|
|
|
|
|
|
|
|
|
||
|
Client Computing Group (CCG) |
|
$8.0 billion |
|
down |
9 |
% |
|
$30.3 billion |
|
up |
4 |
% |
|
Data Center and AI (DCAI) |
|
$3.4 billion |
|
down |
3 |
% |
|
$12.8 billion |
|
up |
1 |
% |
|
Network and Edge (NEX) |
|
$1.6 billion |
|
up |
10 |
% |
|
$5.8 billion |
|
up |
1 |
% |
|
Total Intel Products revenue |
|
$13.0 billion |
|
down |
6 |
% |
|
$48.9 billion |
|
up |
3 |
% |
|
Intel Foundry |
|
$4.5 billion |
|
down |
13 |
% |
|
$17.5 billion |
|
down |
7 |
% |
|
All other |
|
$1.0 billion |
|
down |
20 |
% |
|
$3.8 billion |
|
down |
32 |
% |
|
Intersegment eliminations |
|
$(4.3) billion |
|
|
|
|
$(17.2) billion |
|
|
|
||
|
Total net revenue |
|
$14.3 billion |
|
down |
7 |
% |
|
$53.1 billion |
|
down |
2 |
% |
Intel Products Highlights
Intel Foundry Highlights
Intel Foundry Direct Connect Event
On April 29, 2025, Intel Foundry will host its annual flagship event, Intel Foundry Direct Connect, in San Jose, California. The event will feature talks from Intel leaders, customers, industry technologists and ecosystem partners as they share details of Intel Foundry's strategy, process technology, and advanced packaging and test capabilities. The event will also include an ecosystem exhibition and networking opportunities. For information about the event, please visit https://www.intel.com/content/www/us/en/events/foundry-direct-connect.html .
Business Outlook
Intel's guidance for the first quarter of 2025 includes both GAAP and non-GAAP estimates as follows:
|
Q1 2025 |
|
GAAP |
|
Non-GAAP |
|
Revenue |
|
$11.7-12.7 billion |
|
|
|
Gross Margin |
|
33.8% |
|
36.0% |
|
Tax Rate |
|
(32)% |
|
12% |
|
Earnings (Loss) Per Share Attributable to Intel—Diluted |
|
$(0.27) |
|
$0.00 |
Reconciliations between GAAP and non-GAAP financial measures are included below. Actual results may differ materially from Intel’s business outlook as a result of, among other things, the factors described under "Forward-Looking Statements" below. The gross margin and EPS outlooks are based on the mid-point of the revenue range.
Earnings Webcast
Intel will hold a public webcast at 2 p.m. PST today to discuss the results for its fourth quarter of 2024. The live public webcast can be accessed on Intel's Investor Relations website at www.intc.com . The corresponding earnings presentation and webcast replay will also be available on the site.
Forward-Looking Statements
This release contains forward-looking statements that involve a number of risks and uncertainties. Words such as "accelerate", "achieve", "aim", "ambitions", "anticipate", "believe", "committed", "continue", "could", "designed", "estimate", "expect", "forecast", "future", "goals", "grow", "guidance", "intend", "likely", "may", "might", "milestones", "next generation", "objective", "on track", "opportunity", "outlook", "pending", "plan", "position", "possible", "potential", "predict", "progress", "ramp", "roadmap", "seek", "should", "strive", "targets", "to be", "upcoming", "will", "would", and variations of such words and similar expressions are intended to identify such forward-looking statements, which may include statements regarding:
Such statements involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied, including those associated with:
Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made in this release and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business.
Unless specifically indicated otherwise, the forward-looking statements in this release do not reflect the potential impact of any divestitures, mergers, acquisitions, or other business combinations that have not been completed as of the date of this filing. In addition, the forward-looking statements in this release are based on management's expectations as of the date of this release, unless an earlier date is specified, including expectations based on third-party information and projections that management believes to be reputable. We do not undertake, and expressly disclaim any duty, to update such statements, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law.
About Intel
Intel (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore’s Law, we continuously work to advance the design and manufacturing of semiconductors to help address our customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash the potential of data to transform business and society for the better. To learn more about Intel’s innovations, go to newsroom.intel.com and intel.com .
© Intel Corporation. Intel, the Intel logo, and other Intel marks are trademarks of Intel Corporation or its subsidiaries. Other names and brands may be claimed as the property of others.
|
Intel Corporation |
||||||||||||||||
|
Consolidated Statements of Income and Other Information |
||||||||||||||||
|
|
||||||||||||||||
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
(In Millions, Except Per Share Amounts; Unaudited) |
|
Dec 28, 2024 |
|
Dec 30, 2023 |
|
Dec 28, 2024 |
|
Dec 30, 2023 |
||||||||
|
Net revenue |
|
$ |
14,260 |
|
|
$ |
15,406 |
|
|
$ |
53,101 |
|
|
$ |
54,228 |
|
|
Cost of sales |
|
|
8,676 |
|
|
|
8,359 |
|
|
|
35,756 |
|
|
|
32,517 |
|
|
Gross margin |
|
|
5,584 |
|
|
|
7,047 |
|
|
|
17,345 |
|
|
|
21,711 |
|
|
Research and development |
|
|
3,876 |
|
|
|
3,987 |
|
|
|
16,546 |
|
|
|
16,046 |
|
|
Marketing, general, and administrative |
|
|
1,239 |
|
|
|
1,617 |
|
|
|
5,507 |
|
|
|
5,634 |
|
|
Restructuring and other charges |
|
|
57 |
|
|
|
(1,142 |
) |
|
|
6,970 |
|
|
|
(62 |
) |
|
Operating expenses |
|
|
5,172 |
|
|
|
4,462 |
|
|
|
29,023 |
|
|
|
21,618 |
|
|
Operating income (loss) |
|
|
412 |
|
|
|
2,585 |
|
|
|
(11,678 |
) |
|
|
93 |
|
|
Gains (losses) on equity investments, net |
|
|
316 |
|
|
|
86 |
|
|
|
242 |
|
|
|
40 |
|
|
Interest and other, net |
|
|
(129 |
) |
|
|
117 |
|
|
|
226 |
|
|
|
629 |
|
|
Income (loss) before taxes |
|
|
599 |
|
|
|
2,788 |
|
|
|
(11,210 |
) |
|
|
762 |
|
|
Provision for (benefit from) taxes |
|
|
752 |
|
|
|
128 |
|
|
|
8,023 |
|
|
|
(913 |
) |
|
Net income (loss) |
|
|
(153 |
) |
|
|
2,660 |
|
|
|
(19,233 |
) |
|
|
1,675 |
|
|
Less: net income (loss) attributable to non-controlling interests |
|
|
(27 |
) |
|
|
(9 |
) |
|
|
(477 |
) |
|
|
(14 |
) |
|
Net income (loss) attributable to Intel |
|
$ |
(126 |
) |
|
$ |
2,669 |
|
|
$ |
(18,756 |
) |
|
$ |
1,689 |
|
|
Earnings (loss) per share attributable to Intel—basic |
|
$ |
(0.03 |
) |
|
$ |
0.63 |
|
|
$ |
(4.38 |
) |
|
$ |
0.40 |
|
|
Earnings (loss) per share attributable to Intel—diluted |
|
$ |
(0.03 |
) |
|
$ |
0.63 |
|
|
$ |
(4.38 |
) |
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average shares of common stock outstanding: |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
|
4,319 |
|
|
|
4,222 |
|
|
|
4,280 |
|
|
|
4,190 |
|
|
Diluted |
|
|
4,319 |
|
|
|
4,260 |
|
|
|
4,280 |
|
|
|
4,212 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended |
|
|
|
|
||||||||||
|
(In Millions; Unaudited) |
|
Dec 28, 2024 |
|
Dec 30, 2023 |
|
|
|
|
||||||||
|
Earnings per share of common stock information: |
|
|
|
|
|
|
|
|
||||||||
|
Weighted average shares of common stock outstanding—basic |
|
|
4,319 |
|
|
|
4,222 |
|
|
|
|
|
||||
|
Dilutive effect of employee equity incentive plans |
|
|
— |
|
|
|
38 |
|
|
|
|
|
||||
|
Weighted average shares of common stock outstanding—diluted |
|
|
4,319 |
|
|
|
4,260 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other information: |
|
|
|
|
|
|
|
|||||||||
|
(In Thousands; Unaudited) |
|
Dec 28, 2024 |
|
Sep 28, 2024 |
|
Dec 30, 2023 |
|
|||||||||
|
Employees |
|
|
|
|
|
|
|
|||||||||
|
Intel |
|
|
99.5 |
|
|
|
115.0 |
|
|
|
116.2 |
|
|
|||
|
Mobileye and other subsidiaries |
|
|
5.4 |
|
|
|
5.4 |
|
|
|
5.0 |
|
|
|||
|
NAND 1 |
|
|
4.0 |
|
|
|
3.7 |
|
|
|
3.6 |
|
|
|||
|
Total Intel |
|
|
108.9 |
|
|
|
124.1 |
|
|
|
124.8 |
|
|
|||
|
1 |
|
Employees of the NAND memory business, which we divested to SK hynix on completion of the first closing on Dec. 29, 2021, and fully deconsolidated in Q1 2022. Upon completion of the second closing of the divestiture, which remains pending and subject to closing conditions, the NAND employees will be excluded from the total Intel employee number. |
|
Intel Corporation |
||||||||
|
Consolidated Balance Sheets |
||||||||
|
|
||||||||
|
(In Millions, Except Par Value; Unaudited) |
|
Dec 28, 2024 |
|
Dec 30, 2023 |
||||
|
Assets |
|
|
|
|
||||
|
Current assets: |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
8,249 |
|
|
$ |
7,079 |
|
|
Short-term investments |
|
|
13,813 |
|
|
|
17,955 |
|
|
Accounts receivable, net |
|
|
3,478 |
|
|
|
3,402 |
|
|
Inventories |
|
|
|
|
||||
|
Raw materials |
|
|
1,344 |
|
|
|
1,166 |
|
|
Work in process |
|
|
7,432 |
|
|
|
6,203 |
|
|
Finished goods |
|
|
3,422 |
|
|
|
3,758 |
|
|
|
|
|
12,198 |
|
|
|
11,127 |
|
|
Other current assets |
|
|
9,586 |
|
|
|
3,706 |
|
|
Total current assets |
|
|
47,324 |
|
|
|
43,269 |
|
|
|
|
|
|
|
||||
|
Property, plant, and equipment, net |
|
|
107,919 |
|
|
|
96,647 |
|
|
Equity investments |
|
|
5,383 |
|
|
|
5,829 |
|
|
Goodwill |
|
|
24,693 |
|
|
|
27,591 |
|
|
Identified intangible assets, net |
|
|
3,691 |
|
|
|
4,589 |
|
|
Other long-term assets |
|
|
7,475 |
|
|
|
13,647 |
|
|
Total assets |
|
$ |
196,485 |
|
|
$ |
191,572 |
|
|
|
|
|
|
|
||||
|
Liabilities and stockholders' equity |
|
|
|
|
||||
|
Current liabilities: |
|
|
|
|
||||
|
Accounts payable |
|
|
12,556 |
|
|
|
8,578 |
|
|
Accrued compensation and benefits |
|
|
3,343 |
|
|
|
3,655 |
|
|
Short-term debt |
|
|
3,729 |
|
|
|
2,288 |
|
|
Income taxes payable |
|
|
1,756 |
|
|
|
1,107 |
|
|
Other accrued liabilities |
|
|
14,282 |
|
|
|
12,425 |
|
|
Total current liabilities |
|
|
35,666 |
|
|
|
28,053 |
|
|
|
|
|
|
|
||||
|
Debt |
|
|
46,282 |
|
|
|
46,978 |
|
|
Other long-term liabilities |
|
|
9,505 |
|
|
|
6,576 |
|
|
Stockholders' equity: |
|
|
|
|
||||
|
Common stock, $0.001 par value, 10,000 shares authorized; 4,330 shares issued and outstanding (4,228 issued and outstanding in 2023) and capital in excess of par value |
|
|
50,949 |
|
|
|
36,649 |
|
|
Accumulated other comprehensive income (loss) |
|
|
(711 |
) |
|
|
(215 |
) |
|
Retained earnings |
|
|
49,032 |
|
|
|
69,156 |
|
|
Total Intel stockholders' equity |
|
|
99,270 |
|
|
|
105,590 |
|
|
Non-controlling interests |
|
|
5,762 |
|
|
|
4,375 |
|
|
Total stockholders' equity |
|
|
105,032 |
|
|
|
109,965 |
|
|
Total liabilities and stockholders' equity |
|
$ |
196,485 |
|
|
$ |
191,572 |
|
|
Intel Corporation |
||||||||
|
Consolidated Statements of Cash Flows |
||||||||
|
|
||||||||
|
|
|
Twelve Months Ended |
||||||
|
(In Millions; Unaudited) |
|
Dec 28, 2024 |
|
Dec 30, 2023 |
||||
|
Cash and cash equivalents, beginning of period |
|
$ |
7,079 |
|
|
$ |
11,144 |
|
|
Cash flows provided by (used for) operating activities: |
|
|
|
|
||||
|
Net income (loss) |
|
|
(19,233 |
) |
|
|
1,675 |
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
||||
|
Depreciation |
|
|
9,951 |
|
|
|
7,847 |
|
|
Share-based compensation |
|
|
3,410 |
|
|
|
3,229 |
|
|
Restructuring and other charges |
|
|
3,491 |
|
|
|
(424 |
) |
|
Amortization of intangibles |
|
|
1,428 |
|
|
|
1,755 |
|
|
(Gains) losses on equity investments, net |
|
|
(246 |
) |
|
|
(42 |
) |
|
Deferred taxes |
|
|
6,132 |
|
|
|
(2,033 |
) |
|
Impairments and net (gain) loss on retirement of property, plant, and equipment |
|
|
2,252 |
|
|
|
33 |
|
|
Changes in assets and liabilities: |
|
|
|
|
||||
|
Accounts receivable |
|
|
(75 |
) |
|
|
731 |
|
|
Inventories |
|
|
(1,105 |
) |
|
|
2,097 |
|
|
Accounts payable |
|
|
634 |
|
|
|
(801 |
) |
|
Accrued compensation and benefits |
|
|
(218 |
) |
|
|
(614 |
) |
|
Income taxes |
|
|
(356 |
) |
|
|
(1,498 |
) |
|
Other assets and liabilities |
|
|
2,223 |
|
|
|
(484 |
) |
|
Total adjustments |
|
|
27,521 |
|
|
|
9,796 |
|
|
Net cash provided by (used for) operating activities |
|
|
8,288 |
|
|
|
11,471 |
|
|
Cash flows provided by (used for) investing activities: |
|
|
|
|
||||
|
Additions to property, plant, and equipment |
|
|
(23,944 |
) |
|
|
(25,750 |
) |
|
Proceeds from capital-related government incentives |
|
|
1,936 |
|
|
|
1,011 |
|
|
Acquisitions, net of cash acquired |
|
|
(82 |
) |
|
|
(13 |
) |
|
Purchases of short-term investments |
|
|
(37,940 |
) |
|
|
(44,414 |
) |
|
Maturities and sales of short-term investments |
|
|
41,463 |
|
|
|
44,077 |
|
|
Sales of equity investments |
|
|
1,047 |
|
|
|
472 |
|
|
Other investing |
|
|
(736 |
) |
|
|
576 |
|
|
Net cash provided by (used for) investing activities |
|
|
(18,256 |
) |
|
|
(24,041 |
) |
|
Cash flows provided by (used for) financing activities: |
|
|
|
|
||||
|
Issuance of commercial paper, net of issuance costs |
|
|
7,349 |
|
|
|
— |
|
|
Repayment of commercial paper |
|
|
(7,349 |
) |
|
|
(3,944 |
) |
|
Partner contributions |
|
|
12,714 |
|
|
|
1,511 |
|
|
Proceeds from sales of subsidiary shares |
|
|
— |
|
|
|
2,959 |
|
|
Additions to property, plant, and equipment |
|
|
(1,178 |
) |
|
|
— |
|
|
Issuance of long-term debt, net of issuance costs |
|
|
2,975 |
|
|
|
11,391 |
|
|
Repayment of debt |
|
|
(2,288 |
) |
|
|
(423 |
) |
|
Proceeds from sales of common stock through employee equity incentive plans |
|
|
987 |
|
|
|
1,042 |
|
|
Restricted stock unit withholdings |
|
|
(631 |
) |
|
|
(534 |
) |
|
Payment of dividends to stockholders |
|
|
(1,599 |
) |
|
|
(3,088 |
) |
|
Other financing |
|
|
158 |
|
|
|
(409 |
) |
|
Net cash provided by (used for) financing activities |
|
|
11,138 |
|
|
|
8,505 |
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
1,170 |
|
|
|
(4,065 |
) |
|
Cash and cash equivalents, end of period |
|
$ |
8,249 |
|
|
... $ |
7,079 |
|
|
Intel Corporation |
||||||||||||||||
|
Supplemental Operating Segment Results |
||||||||||||||||
|
|
||||||||||||||||
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
(In Millions; Unaudited) |
|
Dec 28, 2024 |
|
Dec 30, 2023 |
|
Dec 28, 2024 |
|
Dec 30, 2023 |
||||||||
|
Operating segment revenue: |
|
|
|
|
|
|
|
|
||||||||
|
Intel Products: |
|
|
|
|
|
|
|
|
||||||||
|
Client Computing Group |
|
$ |
8,017 |
|
|
$ |
8,844 |
|
|
$ |
30,290 |
|
|
$ |
29,258 |
|
|
Data Center and AI |
|
|
3,387 |
|
|
|
3,503 |
|
|
|
12,817 |
|
|
|
12,635 |
|
|
Network and Edge |
|
|
1,623 |
|
|
|
1,471 |
|
|
|
5,842 |
|
|
|
5,774 |
|
|
Total Intel Products revenue |
|
|
13,027 |
|
|
|
13,818 |
|
|
|
48,949 |
|
|
|
47,667 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Intel Foundry |
|
|
4,502 |
|
|
|
5,175 |
|
|
|
17,543 |
|
|
|
18,910 |
|
|
All other 1 |
|
|
1,042 |
|
|
|
1,297 |
|
|
|
3,824 |
|
|
|
5,608 |
|
|
Intersegment eliminations |
|
|
(4,311 |
) |
|
|
(4,884 |
) |
|
|
(17,215 |
) |
|
|
(17,957 |
) |
|
Total net revenue |
|
$ |
14,260 |
|
|
$ |
15,406 |
|
|
$ |
53,101 |
|
|
$ |
54,228 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Segment operating income (loss): |
|
|
|
|
|
|
|
|
||||||||
|
Intel Products: |
|
|
|
|
|
|
|
|
||||||||
|
Client Computing Group |
|
$ |
3,056 |
|
|
$ |
3,567 |
|
|
$ |
10,920 |
|
|
$ |
9,513 |
|
|
Data Center and AI |
|
|
233 |
|
|
|
738 |
|
|
|
1,338 |
|
|
|
1,620 |
|
|
Network and Edge |
|
|
340 |
|
|
|
109 |
|
|
|
931 |
|
|
|
204 |
|
|
Total Intel Products operating income (loss) |
|
|
3,629 |
|
|
|
4,414 |
|
|
|
13,189 |
|
|
|
11,337 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Intel Foundry |
|
|
(2,260 |
) |
|
|
(1,319 |
) |
|
|
(13,408 |
) |
|
|
(6,955 |
) |
|
All Other 1 |
|
|
118 |
|
|
|
142 |
|
|
|
(84 |
) |
|
|
1,079 |
|
|
Intersegment eliminations |
|
|
(281 |
) |
|
|
(251 |
) |
|
|
(157 |
) |
|
|
(203 |
) |
|
Corporate unallocated |
|
|
(794 |
) |
|
|
(401 |
) |
|
|
(11,218 |
) |
|
|
(5,165 |
) |
|
Total operating income (loss) |
|
$ |
412 |
|
|
$ |
2,585 |
|
|
$ |
(11,678 |
) |
|
$ |
93 |
|
|
1 |
The 'All Other' category includes results from non-reportable segments, including Altera, Mobileye, startups supporting our initiatives, and historical results from divested businesses. |
Intel Corporation
Explanation of Non-GAAP Measures
In addition to disclosing financial results in accordance with US GAAP, this document references non-GAAP financial measures below. We believe these non-GAAP financial measures provide investors with useful supplemental information about our operating performance, enable comparison of financial trends and results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business and measuring our performance. These non-GAAP financial measures are used in our performance-based RSUs and our cash bonus plans.
Our non-GAAP financial measures reflect adjustments based on one or more of the following items, as well as the related effects to income taxes and net income (loss) attributable to non-controlling interests effects. Income tax effects are calculated using a fixed long-term projected tax rate. For 2024 and 2023, we determined the projected non-GAAP tax rate to be 13%. For 2025, we determined the projected non-GAAP tax rate to be 12%. We project this long-term non-GAAP tax rate on at least an annual basis using a five-year non-GAAP financial projection that excludes the income tax effects of each adjustment. The projected non-GAAP tax rate also considers factors such as our tax structure, our tax positions in various jurisdictions, and key legislation in significant jurisdictions where we operate. This long-term non-GAAP tax rate may be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or changes to our strategy or business operations. Management uses this non-GAAP tax rate in managing internal short- and long-term operating plans and in evaluating our performance; we believe this approach facilitates comparison of our operating results and provides useful evaluation of our current operating performance. Non-GAAP adjustments attributable to non-controlling interests are calculated by adjusting for the minority stockholder portion of non-GAAP adjustments we make for relevant acquisition-related costs, share-based compensation, restructuring and other charges, and income tax effects, as applicable to each majority-owned subsidiary.
Our non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with US GAAP, and the financial results calculated in accordance with US GAAP and reconciliations from these results should be carefully evaluated.
|
Non-GAAP
|
Definition |
Usefulness to management and investors |
|
Acquisition-related adjustments |
Amortization of acquisition-related intangible assets consists of amortization of intangible assets such as developed technology, brands, and customer relationships acquired in connection with business combinations. Charges related to the amortization of these intangibles are recorded within both cost of sales and MG&A in our US GAAP financial statements. Amortization charges are recorded over the estimated useful life of the related acquired intangible asset, and thus are generally recorded over multiple years. |
We exclude amortization charges for our acquisition-related intangible assets for purposes of calculating certain non-GAAP measures because these charges are inconsistent in size and are significantly impacted by the timing and valuation of our acquisitions. These adjustments facilitate a useful evaluation of our current operating performance and comparison to our past operating performance and provide investors with additional means to evaluate cost and expense trends. |
|
Share-based compensation |
Share-based compensation consists of charges related to our employee equity incentive plans. |
We exclude charges related to share-based compensation for purposes of calculating certain non-GAAP measures because we believe these adjustments provide comparability to peer company results and because these charges are not viewed by management as part of our core operating performance. We believe these adjustments provide investors with a useful view, through the eyes of management, of our core business model, how management currently evaluates core operational performance, and additional means to evaluate expense trends, including in comparison to other peer companies. |
|
Restructuring and other charges |
Restructuring charges are costs associated with a restructuring plan and are primarily related to employee severance and benefit arrangements. 2024 mainly includes charges associated with the 2024 Restructuring Plan, primarily composed of cash-based employee severance and benefit arrangements, and cash and non-cash charges related to real estate exits and consolidations, as well as non-cash construction-in-progress asset impairments resulting from business exit activities. Other charges include periodic goodwill and asset impairments, and other costs associated with certain non-core activities. 2024 includes non-cash charges resulting from the impairment of goodwill and certain acquired intangible assets. 2023 includes a benefit as a result of developments in the VLSI litigation and two legal related fees, which we do not expect to recur, relating to an annulled EC-imposed fine and a termination fee relating to Tower. 2023 also includes costs associated with a formal restructuring plan approved in 2022 and are primarily related to employee severance and benefit arrangements. |
We exclude restructuring and other charges, including any adjustments to charges recorded in prior periods, for purposes of calculating certain non-GAAP measures because these costs do not reflect our core operating performance. These adjustments facilitate a useful evaluation of our core operating performance and comparisons to past operating results and provide investors with additional means to evaluate expense trends. |
|
(Gains) losses on equity investments, net |
(Gains) losses on equity investments, net consists of ongoing mark-to-market adjustments on marketable equity securities, observable price adjustments on non-marketable equity securities, related impairment charges, and the gains (losses) from the sale of equity investments and other. |
We exclude these non-operating gains and losses for purposes of calculating certain non-GAAP measures to provide comparability between periods. The exclusion reflects how management evaluates the core operations of the business. |
|
(Gains) losses from divestiture |
(Gains) losses are recognized at the close of a divestiture, or over a specified deferral period when deferred consideration is received at the time of closing. Based on our ongoing obligation under the NAND wafer manufacturing and sale agreement entered into in connection with the first closing of the sale of our NAND memory business in 2021, a portion of the initial closing consideration was deferred and will be recognized between first and second closing. |
We exclude gains or losses resulting from divestitures for purposes of calculating certain non-GAAP measures because they do not reflect our current operating performance. These adjustments facilitate a useful evaluation of our current operating performance and comparisons to past operating results. |
|
Interest received related to an annulled European Commission (EC) fine |
Interest received in 2024 related to an annulled EC-imposed fine that was paid in 2009 and refunded to us in 2022. |
We exclude this non-operating and non-recurring interest income for purposes of calculating certain non-GAAP measures because this adjustment facilitates comparison to past results and provides a useful evaluation of our current performance. |
|
Deferred tax assets valuation allowances |
A non-cash charge recorded to provision for (benefit from) income taxes related to a discreet valuation allowance recorded against our US deferred tax assets. |
We excluded a discrete non-cash charge in 2024 related to a valuation allowance established against our US deferred tax assets due to a historical cumulative loss for GAAP purposes. We excluded the discreet valuation allowance when calculating certain non-GAAP measures, as there is no such historical cumulative loss on a non-GAAP basis. Because of the size of the charge, the adjustment facilitates a useful evaluation of our core operating performance and comparisons to our past operating results. |
|
Adjusted free cash flow |
We reference a non-GAAP financial measure of adjusted free cash flow, which is used by management when assessing our sources of liquidity, capital resources, and quality of earnings. Adjusted free cash flow is operating cash flow adjusted for (1) additions to property, plant, and equipment, net of proceeds from capital-related government incentives and net partner contributions, and (2) payments on finance leases. |
This non-GAAP financial measure is helpful in understanding our capital requirements and sources of liquidity by providing an additional means to evaluate the cash flow trends of our business. |
|
Net capital spending |
We reference a non-GAAP financial measure of net capital spending, which is additions to property, plant, and equipment, net of proceeds from capital-related government incentives and net partner contributions. |
We believe this measure provides investors with useful supplemental information about our capital investment activities and capital offsets, and allows for greater transparency with respect to a key metric used by management in operating our business and measuring our performance. |
Intel Corporation
Supplemental Reconciliations of GAAP Actuals to Non-GAAP Actuals
Set forth below are reconciliations of the non-GAAP financial measure to the most directly comparable US GAAP financial measure. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with US GAAP, and the reconciliations from US GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to "Explanation of Non-GAAP Measures" in this document for a detailed explanation of the adjustments made to the comparable US GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
(In Millions, Except Per Share Amounts; Unaudited) |
|
Dec 28, 2024 |
|
Dec 30, 2023 |
|
Dec 28, 2024 |
|
Dec 30, 2023 |
||||||||
|
GAAP gross margin |
|
$ |
5,584 |
|
|
$ |
7,047 |
|
|
$ |
17,345 |
|
|
$ |
21,711 |
|
|
Acquisition-related adjustments |
|
|
207 |
|
|
|
300 |
|
|
|
879 |
|
|
|
1,235 |
|
|
Share-based compensation |
|
|
210 |
|
|
|
172 |
|
|
|
875 |
|
|
|
705 |
|
|
Non-GAAP gross margin |
|
$ |
6,001 |
|
|
$ |
7,519 |
|
|
$ |
19,099 |
|
|
$ |
23,651 |
|
|
GAAP gross margin percentage |
|
|
39.2 |
% |
|
|
45.7 |
% |
|
|
32.7 |
% |
|
|
40.0 |
% |
|
Acquisition-related adjustments |
|
|
1.5 |
% |
|
|
1.9 |
% |
|
|
1.7 |
% |
|
|
2.3 |
% |
|
Share-based compensation |
|
|
1.5 |
% |
|
|
1.1 |
% |
|
|
1.6 |
% |
|
|
1.3 |
% |
|
Non-GAAP gross margin percentage |
|
|
42.1 |
% |
|
|
48.8 |
% |
|
|
36.0 |
% |
|
|
43.6 |
% |
|
GAAP R&D and MG&A |
|
$ |
5,115 |
|
|
$ |
5,604 |
|
|
$ |
22,053 |
|
|
$ |
21,680 |
|
|
Acquisition-related adjustments |
|
|
(41 |
) |
|
|
(42 |
) |
|
|
(165 |
) |
|
|
(172 |
) |
|
Share-based compensation |
|
|
(441 |
) |
|
|
(623 |
) |
|
|
(2,535 |
) |
|
|
(2,524 |
) |
|
Non-GAAP R&D and MG&A |
|
$ |
4,633 |
|
|
$ |
4,939 |
|
|
$ |
19,353 |
|
|
$ |
18,984 |
|
|
GAAP operating income (loss) |
|
$ |
412 |
|
|
$ |
2,585 |
|
|
$ |
(11,678 |
) |
|
$ |
93 |
|
|
Acquisition-related adjustments |
|
|
248 |
|
|
|
342 |
|
|
|
1,044 |
|
|
|
1,407 |
|
|
Share-based compensation |
|
|
651 |
|
|
|
795 |
|
|
|
3,410 |
|
|
|
3,229 |
|
|
Restructuring and other charges |
|
|
57 |
|
|
|
(1,142 |
) |
|
|
6,970 |
|
|
|
(62 |
) |
|
Non-GAAP operating income (loss) |
|
$ |
1,368 |
|
|
$ |
2,580 |
|
|
$ |
(254 |
) |
|
$ |
4,667 |
|
|
GAAP operating margin (loss) |
|
|
2.9 |
% |
|
|
16.8 |
% |
|
|
(22.0 |
)% |
|
|
0.2 |
% |
|
Acquisition-related adjustments |
|
|
1.7 |
% |
|
|
2.2 |
% |
|
|
2.0 |
% |
|
|
2.6 |
% |
|
Share-based compensation |
|
|
4.6 |
% |
|
|
5.2 |
% |
|
|
6.4 |
% |
|
|
6.0 |
% |
|
Restructuring and other charges |
|
|
0.4 |
% |
|
|
(7.4 |
)% |
|
|
13.1 |
% |
|
|
(0.1 |
)% |
|
Non-GAAP operating margin |
|
|
9.6 |
% |
|
|
16.7 |
% |
|
|
(0.5 |
)% |
|
|
8.6 |
% |
|
GAAP tax rate |
|
|
125.5 |
% |
|
|
4.6 |
% |
|
|
71.6 |
% |
|
|
(119.8 |
)% |
|
Deferred tax assets valuation allowance |
|
|
— |
% |
|
|
— |
% |
|
|
(71.6 |
)% |
|
|
— |
% |
|
Income tax effects |
|
|
(112.5 |
)% |
|
|
8.4 |
% |
|
|
13.0 |
% |
|
|
132.8 |
% |
|
Non-GAAP tax rate |
|
|
13.0 |
% |
|
|
13.0 |
% |
|
|
13.0 |
% |
|
|
13.0 |
% |
|
GAAP net income (loss) attributable to Intel |
|
$ |
(126 |
) |
|
$ |
2,669 |
|
|
$ |
(18,756 |
) |
|
$ |
1,689 |
|
|
Acquisition-related adjustments |
|
|
248 |
|
|
|
342 |
|
|
|
1,044 |
|
|
|
1,407 |
|
|
Share-based compensation |
|
|
651 |
|
|
|
795 |
|
|
|
3,410 |
|
|
|
3,229 |
|
|
Restructuring and other charges |
|
|
57 |
|
|
|
(1,142 |
) |
|
|
6,970 |
|
|
|
(62 |
) |
|
(Gains) losses on equity investments, net |
|
|
(316 |
) |
|
|
(86 |
) |
|
|
(242 |
) |
|
|
(40 |
) |
|
(Gains) losses from divestiture |
|
|
(39 |
) |
|
|
(39 |
) |
|
|
(156 |
) |
|
|
(153 |
) |
|
Interest received related to an annulled EC fine |
|
|
(560 |
) |
|
|
— |
|
|
|
(560 |
) |
|
|
— |
|
|
Adjustments attributable to non-controlling interest |
|
|
(16 |
) |
|
|
(18 |
) |
|
|
(396 |
) |
|
|
(66 |
) |
|
Deferred tax assets valuation allowances |
|
|
— |
|
|
|
— |
|
|
|
9,925 |
|
|
|
— |
|
|
Income tax effects |
|
|
669 |
|
|
|
(218 |
) |
|
|
(1,805 |
) |
|
|
(1,581 |
) |
|
Non-GAAP net income (loss) attributable to Intel |
|
$ |
568 |
|
|
$ |
2,303 |
|
|
$ |
(566 |
) |
|
$ |
4,423 |
|
|
(In Millions, Except Per Share Amounts) |
|
Dec 28, 2024 |
|
Dec 30, 2023 |
|
Dec 28, 2024 |
|
Dec 30, 2023 |
||||||||
|
GAAP earnings (loss) per share attributable to Intel—diluted |
|
$ |
(0.03 |
) |
|
$ |
0.63 |
|
|
$ |
(4.38 |
) |
|
$ |
0.40 |
|
|
Acquisition-related adjustments |
|
|
0.06 |
|
|
|
0.08 |
|
|
|
0.24 |
|
|
|
0.33 |
|
|
Share-based compensation |
|
|
0.15 |
|
|
|
0.18 |
|
|
|
0.80 |
|
|
|
0.77 |
|
|
Restructuring and other charges |
|
|
0.01 |
|
|
|
(0.27 |
) |
|
|
1.63 |
|
|
|
(0.01 |
) |
|
(Gains) losses on equity investments, net |
|
|
(0.07 |
) |
|
|
(0.02 |
) |
|
|
(0.06 |
) |
|
|
(0.01 |
) |
|
(Gains) losses from divestiture |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.04 |
) |
|
|
(0.04 |
) |
|
Interest received related to an annulled EC fine |
|
|
(0.13 |
) |
|
|
— |
|
|
|
(0.13 |
) |
|
|
— |
|
|
Adjustments attributable to non-controlling interest |
|
|
— |
|
|
|
— |
|
|
|
(0.09 |
) |
|
|
(0.02 |
) |
|
Deferred tax assets valuation allowance |
|
|
— |
|
|
|
— |
|
|
|
2.32 |
|
|
|
— |
|
|
Income tax effects |
|
|
0.15 |
|
|
|
(0.05 |
) |
|
|
(0.42 |
) |
|
|
(0.37 |
) |
|
Non-GAAP earnings (loss) per share attributable to Intel—diluted |
|
$ |
0.13 |
|
|
$ |
0.54 |
|
|
$ |
(0.13 |
) |
|
$ |
1.05 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP net cash provided by (used for) operating activities |
|
$ |
3,165 |
|
|
$ |
4,624 |
|
|
$ |
8,288 |
|
|
$ |
11,471 |
|
|
Net purchase of property, plant, and equipment |
|
|
(4,667 |
) |
|
|
(5,929 |
) |
|
|
(10,515 |
) |
|
|
(23,228 |
) |
|
Payments on finance leases |
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(96 |
) |
|
Adjusted free cash flow |
|
$ |
(1,503 |
) |
|
$ |
(1,305 |
) |
|
$ |
(2,228 |
) |
|
$ |
(11,853 |
) |
|
GAAP net cash provided by (used for) investing activities |
|
$ |
(3,764 |
) |
|
$ |
(5,318 |
) |
|
$ |
(18,256 |
) |
|
$ |
(24,041 |
) |
|
GAAP net cash provided by (used for) financing activities |
|
$ |
63 |
|
|
$ |
152 |
|
|
$ |
11,138 |
|
|
$ |
8,505 |
|
Intel Corporation
Supplemental Reconciliations of GAAP Outlook to Non-GAAP Outlook
Set forth below are reconciliations of the non-GAAP financial measure to the most directly comparable US GAAP financial measure. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with US GAAP, and the financial outlook prepared in accordance with US GAAP and the reconciliations from this Business Outlook should be carefully evaluated. Please refer to "Explanation of Non-GAAP Measures" in this document for a detailed explanation of the adjustments made to the comparable US GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.
|
|
|
Q1 2025 Outlook 1 |
||
|
|
|
Approximately |
||
|
GAAP gross margin percentage |
|
|
33.8 |
% |
|
Acquisition-related adjustments |
|
|
0.9 |
% |
|
Share-based compensation |
|
|
1.3 |
% |
|
Non-GAAP gross margin percentage |
|
|
36.0 |
% |
|
|
|
|
||
|
GAAP tax rate |
|
|
(32 |
)% |
|
Income tax effects |
|
|
44 |
% |
|
Non-GAAP tax rate |
|
|
12 |
% |
|
|
|
|
||
|
GAAP earnings (loss) per share attributable to Intel—diluted |
|
$ |
(0.27 |
) |
|
Acquisition-related adjustments |
|
|
0.04 |
|
|
Share-based compensation |
|
|
0.16 |
|
|
Restructuring and other charges |
|
|
0.02 |
|
|
(Gains) losses from divestiture |
|
|
(0.01 |
) |
|
Adjustments attributable to non-controlling interest |
|
|
(0.01 |
) |
|
Income tax effects |
|
|
0.07 |
|
|
Non-GAAP earnings (loss) per share attributable to Intel—diluted |
|
$ |
0.00 |
|
|
1 |
|
Non-GAAP gross margin percentage and non-GAAP earnings (loss) per share attributable to Intel outlook based on the mid-point of the revenue range. |
Intel Corporation
Supplemental Reconciliations of Other GAAP to Non-GAAP Forward-Looking Estimates
Set forth below are reconciliations of the non-GAAP financial measure to the most directly comparable US GAAP financial measure. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with US GAAP, and the reconciliations should be carefully evaluated. Please refer to "Explanation of Non-GAAP Measures" in this document for a detailed explanation of the adjustments made to the comparable US GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.
|
(In Billions) |
|
Full-Year
|
||
|
|
|
Approximately |
||
|
|
|
|
||
|
GAAP additions to property, plant and equipment (gross capital expenditures) |
|
$ |
20.0 |
|
|
Proceeds from capital-related government incentives |
|
(4.0 - 6.0 |
) |
|
|
Partner contributions, net |
|
(4.0 - 5.0 |
) |
|
|
Non-GAAP net capital spending |
|
$8.0 - $11.0 |
||
|
|
|
|
||
|
GAAP R&D and MG&A |
|
$ |
20.0 |
|
|
Acquisition-related adjustments |
|
|
(0.1 |
) |
|
Share-based compensation |
|
|
(2.4 |
) |
|
Non-GAAP R&D and MG&A |
|
$ |
17.5 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250130580777/en/
Contacts
Kylie Altman
Investor Relations
1-916-356-0320
[email protected]
Sophie Won Metzger
Media Relations
1-408-653-0475
[email protected]
