Intel Reports First-Quarter 2021 Financial Results

News Sum­ma­ry

>First-quar­ter GAAP reve­nue of $19.7 bil­li­on, down 1 per­cent year over year (YoY), and non-GAAP reve­nue of $18.6 bil­li­on, flat YoY, which excee­ded Janu­a­ry gui­d­ance by $1.1 billion.

▪       First-quar­ter GAAP ear­nings-per-share (EPS) was $0.82; non-GAAP EPS was $1.39, which excee­ded Janu­a­ry gui­d­ance by $0.29.

▪       In Q1, Intel CEO Pat Gel­sin­ger unvei­led the company’s new, dif­fe­ren­tia­ted IDM 2.0 stra­te­gy for manu­fac­tu­ring, inno­va­ti­on and pro­duct leadership.

▪       Rai­sing full-year 2021 gui­d­ance. Now expec­ting GAAP reve­nue of $77.0 bil­li­on and non-GAAP reve­nue of $72.5 bil­li­on; GAAP EPS of $4.00 and non-GAAP EPS of $4.60.1

SANTA CLARA, Calif., April 22, 2021 — Intel Cor­po­ra­ti­on today repor­ted first-quar­ter 2021 finan­cial results.

Intel deli­ve­r­ed strong first-quar­ter results dri­ven by excep­tio­nal demand for our lea­ders­hip pro­ducts and out­stan­ding exe­cu­ti­on by our team. The respon­se to our new IDM 2.0 stra­te­gy has been extra­or­di­na­ry, our pro­duct road­map is gai­ning momen­tum, and we’re rapidly pro­gres­sing our plans with re-invi­go­ra­ted focus on inno­va­ti­on and exe­cu­ti­on,” said Pat Gel­sin­ger, Intel CEO. “This is a pivo­tal year for Intel. We are set­ting our stra­te­gic foun­da­ti­on and inves­ting to acce­le­ra­te our tra­jec­to­ry and capi­ta­li­ze on the explo­si­ve growth in semi­con­duc­tors that power our incre­a­singly digi­tal world.”

Q1 2021 Finan­cial Highlights

First-quar­ter 2021 GAAP ope­ra­ting mar­gin, net inco­me, tax rate, and EPS results reflect the impact of a char­ge rela­ted to VLSI liti­ga­ti­on. Intel stron­gly dis­agrees with the jury’s ver­dict in March and intends to appeal.

  GAAP   Non-GAAP
  Q1 2021 Q1 2020 vs. Q1 2020   Q1 2021 Q1 2020 vs. Q1 2020
Reve­nue ($B) $19.7 $19.8 down 1%   $18.6 $18.6 flat
Gross Mar­gin 55.2% 60.6% down 5.4 ppt   58.4% 64.5% down 6.1 ppt
R&D and MG&A ($B) $5.0 $4.8 up 3%   $4.8 $4.6 up 2%
Ope­ra­ting Margin 18.8% 35.5% down 16.7 ppt   32.8% 39.5% down 6.7 ppt
Tax Rate 14.0% 14.4% down 0.5 ppt   13.7% 13.7% flat
Net Inco­me ($B) $3.4 $5.7 down 41%   $5.7 $6.1 down 6%
Ear­nings Per Share $0.82 $1.31 down 37%   $1.39 $1.41 down 1%

In the first quar­ter, the com­pa­ny gene­ra­ted $5.5 bil­li­on in cash from ope­ra­ti­ons, paid divi­dends of $1.4 bil­li­on, and used $2.3 bil­li­on to repurcha­se stock.

 

Busi­ness Unit Summary

Key Busi­ness Unit Reve­nue and Trends   Q1 2021   vs. Q1 2020
CCG   $10.6 bil­li­on   up 8%
DCG   $5.6 bil­li­on   down 20%
Inter­net of Things          
IOTG   $914 mil­li­on   up 4%
Mobi­leye   $377 mil­li­on   up 48%
NSG   $1.1 bil­li­on   down 17%
PSG   $486 mil­li­on   down 6%

First-quar­ter reve­nue excee­ded Janu­a­ry gui­d­ance by $1.1 bil­li­on led by con­ti­nued, strong PC demand. PC unit volu­mes were up 38 per­cent YoY, and note­book volu­mes set a new Intel record. The com­pa­ny also saw initi­al reco­very of Enter­pri­se and Government sales in the Data Cen­ter Group (DCG). Intel also achie­ved bet­ter-than-expec­ted reve­nue in Inter­net of Things Group (IOTG) and Mobi­leye, and Mobi­leye set a new reve­nue record in the quarter.

In the first quar­ter of 2021, Intel ship­ped new CPU pro­ducts and announ­ced key cus­to­mer design wins. The com­pa­ny also com­ple­ted the CEO tran­si­ti­on to Pat Gel­sin­ger who unvei­led Intel’s new, dif­fe­ren­tia­ted IDM 2.0 stra­te­gy for manu­fac­tu­ring, inno­va­ti­on and pro­duct leadership.

Busi­ness Highlights

▪       Announ­ced new IDM 2.0 Stra­te­gy, inclu­ding $20 bil­li­on capa­ci­ty expan­si­on plans in Ari­zo­na and new Intel Found­ry Services.

▪       Intro­du­ced new cli­ent pro­ces­sor fami­lies inclu­ding: 11th Gen Intel® Core™ vPro® plat­form, N‑series 10-nano­me­ter Pen­ti­um® Sil­ver and Cele­ron® pro­ces­sors, 11th Gen Intel® Core™ H‑series mobi­le pro­ces­sors and 11th Gen Intel® Core™ S‑series desk­top pro­ces­sors (code-named “Rocket Lake‑S”). 

▪       Laun­ched new 3rd Gen Intel® Xeon® Scala­b­le pro­ces­sors (code-named “Ice Lake”), inclu­ding new net­work-opti­mi­zed “N‑SKUs”.

▪       Achie­ved Ama­zon Web Ser­vices High Per­for­mance Com­pu­ting Com­pe­ten­cy status. 

▪       Announ­ced 5G net­work col­la­bo­ra­ti­on with Goog­le Cloud. 

▪       Intel’s Haba­na AI acce­le­ra­tors and Intel Xeon Scala­b­le pro­ces­sors selec­ted by Uni­ver­si­ty of Cali­for­nia at San Die­go to power new Voya­ger super computer.

▪       Ship­ped new Intel® Agilex™ FPGAs with hete­ro­ge­ne­ous inte­gra­ti­on and advan­ced 3D packaging. 

▪       Mobileye’s self-dri­ving sys­tem, Mobi­leye Dri­ve™, will be the auto­no­mous “dri­ver” for Udelv’s next-genera­ti­on electric self-dri­ving deli­very vehicle.

Addi­tio­nal infor­ma­ti­on regar­ding Intel’s results can be found in the Q1’21 Ear­nings Pre­sen­ta­ti­on avail­ab­le at: www.intc.com.

 

Busi­ness Outlook

Intel’s gui­d­ance for the second quar­ter and full year inclu­des both GAAP and non-GAAP esti­ma­tes. Our Non-GAAP mea­su­res exclu­de the NAND memo­ry busi­ness, which is sub­ject to a pre­vious­ly-announ­ced pen­ding sale, as well as cer­tain other items. Recon­ci­lia­ti­ons bet­ween GAAP and non-GAAP finan­cial mea­su­res are inclu­ded below.

Q2 2021   GAAP   Non-GAAP
    Appro­xi­mate­ly   Appro­xi­mate­ly
Reve­nue   $18.9 bil­li­on   $17.8 bil­li­on
Gross Mar­gin   55%   57%
Tax rate   13%   13%
Ear­nings per share   $1.05   $1.05

 

 

Full-Year 2021   GAAP   Non-GAAP
    Appro­xi­mate­ly   Appro­xi­mate­ly
Reve­nue   $77.0 bil­li­on   $72.5 bil­li­on
Gross Mar­gin   54.5%   56.5%
Tax rate   19%   13%
Ear­nings per share   $4.00   $4.60
Full-year capi­tal spending   $19.0–20.0 bil­li­on   $19.0–20.0 bil­li­on^
Free cash flow   N/A   $10.5 bil­li­on

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.

Ear­nings Webcast

Intel will hold a public web­cast at 2:00 p.m. PDT today to dis­cuss the results for its first quar­ter of 2021. The live public web­cast can be acces­sed on Intel’s Inves­tor Rela­ti­ons web­site at www.intc.com. The Q1’21 Ear­nings Pre­sen­ta­ti­on, web­cast replay, and audio down­load will also be avail­ab­le on the site. 

Intel plans to report its ear­nings for the second quar­ter of 2021 on July 22, 2021 prompt­ly after clo­se of mar­ket, and rela­ted mate­ri­als will be avail­ab­le at www.intc.com. A public web­cast of Intel’s ear­nings con­fe­rence call will fol­low at 2:00 p.m. PDT at www.intc.com.

 

 

For­ward-Loo­king Statements

Intel’s Busi­ness Out­look and other state­ments in this release that refer to future plans and expec­ta­ti­ons are for­ward-loo­king state­ments that invol­ve a num­ber of risks and uncer­tain­ties. Words such as “anti­ci­pa­tes,” “expects,” “intends,” “goals,” “plans,” “fore­cas­ting,” “gui­d­ance,” “belie­ves,” “seeks,” “esti­ma­tes,” “con­ti­nues,” “laun­ching,” “aim,” “may,” “will,” “would,” “should,” “could,” and varia­ti­ons of such words and simi­lar expres­si­ons are inten­ded to iden­ti­fy such for­ward-loo­king state­ments. State­ments that refer to or are based on esti­ma­tes, fore­casts, pro­jec­tions, uncer­tain events or assump­ti­ons, inclu­ding state­ments rela­ting to Intel’s stra­te­gy, manu­fac­tu­ring expan­si­on plans and invest­ments inclu­ding Intel’s plan­ned Ari­zo­na expan­si­on, plans and goals rela­ted to Intel’s found­ry busi­ness,  sup­ply expec­ta­ti­ons, the pen­ding sale of our NAND memo­ry busi­ness, mar­ket oppor­tu­ni­ty, busi­ness plans, future macroeco­no­mic con­di­ti­ons, future pro­ducts and tech­no­lo­gy and the expec­ted avai­la­bi­li­ty and bene­fits of such pro­ducts and tech­no­lo­gy, expec­ta­ti­ons regar­ding cus­to­mers, and anti­ci­pa­ted trends in our busi­nes­ses or the mar­kets rele­vant to them, also iden­ti­fy for­ward-loo­king state­ments. All for­ward-loo­king state­ments inclu­ded in this release are based on management’s expec­ta­ti­ons as of the date of this release and, except as requi­red by law, Intel dis­c­laims any obli­ga­ti­on to update the­se for­ward-loo­king state­ments to reflect future events or cir­cum­s­tan­ces. For­ward-loo­king state­ments invol­ve many risks and uncer­tain­ties that could cau­se actu­al results to dif­fer mate­ri­al­ly from tho­se expres­sed or implied in such state­ments. Intel pre­sent­ly con­si­ders the fol­lowing to be among the important fac­tors that can cau­se actu­al results to dif­fer mate­ri­al­ly from the company’s expectations.

▪       Demand for Intel’s pro­ducts is high­ly varia­ble and can dif­fer from expec­ta­ti­ons due to fac­tors inclu­ding chan­ges in busi­ness and eco­no­mic con­di­ti­ons; cus­to­mer con­fi­dence or inco­me levels, and the levels of cus­to­mer capi­tal spen­ding; the intro­duc­tion, avai­la­bi­li­ty and mar­ket accep­t­ance of Intel’s pro­ducts, pro­ducts used tog­e­ther with Intel pro­ducts, 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; chan­ges in cus­to­mer needs and emer­ging tech­no­lo­gy trends; and chan­ges in the level of inven­to­ry and com­pu­ting capa­ci­ty at customers.

▪       Intel’s results can 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, inclu­ding as a result of ongo­ing indus­try shor­ta­ges of com­pon­ents and sub­stra­tes; pro­duct manu­fac­tu­ring quality/yields; and chan­ges in capi­tal requi­re­ments and invest­ment plans. Varia­ti­ons in results can also be cau­sed by the timing of Intel pro­duct intro­duc­tions and rela­ted expen­ses, inclu­ding mar­ke­ting pro­grams, and Intel’s abi­li­ty to respond quick­ly to tech­no­lo­gi­cal deve­lo­p­ments and to intro­du­ce new pro­ducts or incor­po­ra­te new fea­tures into exis­ting pro­ducts, as well as decisi­ons to exit pro­duct lines or busi­nes­ses, which can result in rest­ruc­tu­ring and asset impairment charges.

▪       Intel’s results can be affec­ted by adver­se eco­no­mic, social, poli­ti­cal and physical/infrastructure con­di­ti­ons in coun­tries whe­re Intel, its cus­to­mers or its sup­pliers ope­ra­te, inclu­ding reces­si­on or slowing growth, mili­ta­ry con­flict and other secu­ri­ty risks, natu­ral dis­as­ters, infra­st­ruc­tu­re dis­rup­ti­ons, health con­cerns (inclu­ding the COVID-19 pan­de­mic), fluc­tua­tions in cur­ren­cy exchan­ge rates, sanc­tions and tariffs, poli­ti­cal dis­pu­tes, chan­ges in government grants and incen­ti­ves, and con­ti­nuing uncer­tain­ty regar­ding social, poli­ti­cal, immi­gra­ti­on, and tax and tra­de poli­ci­es in the U.S. and abroad. Results can also be affec­ted by the for­mal or infor­mal impo­si­ti­on by coun­tries of new or revi­sed export and/or import and doing-busi­ness regu­la­ti­ons, inclu­ding chan­ges or uncer­tain­ty rela­ted to the U.S. government enti­ty list and chan­ges in the abi­li­ty to obtain export licen­ses, which can be chan­ged without pri­or notice.

▪       The COVID-19 pan­de­mic has adver­se­ly affec­ted signi­fi­cant por­ti­ons of Intel’s busi­ness and could have a mate­ri­al adver­se effect on Intel’s finan­cial con­di­ti­on and results of ope­ra­ti­ons. The pan­de­mic has resul­ted in aut­ho­ri­ties impo­sing nume­rous mea­su­res to try to con­tain the virus. The­se mea­su­res have impac­ted and may fur­ther impact our work­for­ce and ope­ra­ti­ons, the ope­ra­ti­ons of our cus­to­mers, and tho­se of our respec­ti­ve ven­dors, sup­pliers, and part­ners. Restric­tions on our manu­fac­tu­ring or sup­port ope­ra­ti­ons or work­for­ce, or simi­lar limi­ta­ti­ons for our ven­dors and sup­pliers, can impact our abi­li­ty to meet cus­to­mer demand and could have a mate­ri­al adver­se effect on us. Cur­rent and future restric­tions or dis­rup­ti­ons of trans­por­ta­ti­on, or dis­rup­ti­ons in our cus­to­mers’ ope­ra­ti­ons and sup­ply chains, may adver­se­ly affect our results of ope­ra­ti­ons. The pan­de­mic has cau­sed us to modi­fy our busi­ness prac­ti­ces. The­re is no cer­tain­ty that such mea­su­res will be suf­fi­ci­ent to miti­ga­te the risks posed by the virus, and ill­ness and work­for­ce dis­rup­ti­ons could lead to unavai­la­bi­li­ty of our key per­son­nel and harm our abi­li­ty to per­form cri­ti­cal func­tions. The pan­de­mic has signi­fi­cant­ly incre­a­sed eco­no­mic and demand uncer­tain­ty. Demand for our pro­ducts has been har­med in several are­as of our busi­ness and/or could be mate­ri­al­ly har­med in the future. The pan­de­mic has led to incre­a­sed dis­rup­ti­on and vola­ti­li­ty in capi­tal mar­kets and credit mar­kets, which could adver­se­ly affect our liqui­di­ty and capi­tal resour­ces. An eco­no­mic slow­down or reces­si­on can also result in adver­se impacts such as incre­a­sed credit and collec­ti­bi­li­ty risks, adver­se impacts on our sup­pliers, fail­u­res of coun­ter­par­ties, asset impairments, and decli­nes in the value of our finan­cial instru­ments. The degree to which COVID-19 impacts our results will depend on future deve­lo­p­ments, which are high­ly uncer­tain and can­not be pre­dic­ted, and our Busi­ness Out­look is sub­ject to con­si­derable uncer­tain­ty. The impact of the pan­de­mic can also exa­cer­ba­te other risks dis­cus­sed in this section.

▪       Intel ope­ra­tes in high­ly com­pe­ti­ti­ve indus­tries and its ope­ra­ti­ons have high cos­ts that are eit­her fixed or dif­fi­cult to redu­ce in the short term. In addi­ti­on, we have ent­e­red new are­as and intro­du­ced adja­cent pro­ducts, such as our inten­ti­on to beco­me a major pro­vi­der of found­ry ser­vices, and we face new sources of com­pe­ti­ti­on and uncer­tain mar­ket demand or accep­t­ance of our offe­rings with respect to the­se new are­as and pro­ducts, and they do not always grow as pro­jec­ted. Risks rela­ted to our IDM 2.0 stra­te­gy and found­ry busi­ness are also descri­bed in our press relea­ses dated March 23, 2021.

▪       The amount, timing, and exe­cu­ti­on of Intel’s stock repurcha­se pro­gram fluc­tua­te based on Intel’s prio­ri­ties for the use of cash for other purposes—such as inves­ting in our busi­ness, inclu­ding ope­ra­tio­nal and capi­tal spen­ding, acqui­si­ti­ons, and retur­ning cash to our stock­hol­ders as divi­dend payments—and becau­se of chan­ges in cash flows, tax laws, and other laws, or the mar­ket pri­ce of our com­mon stock. Our stock repurcha­se pro­gram may be sus­pen­ded or ter­mi­na­ted at any time.

▪       Intel’s expec­ted tax rate is based on cur­rent tax law, inclu­ding cur­rent inter­pre­ta­ti­ons of the Tax Cuts and Jobs Act of 2017 (TCJA), and cur­rent expec­ted inco­me and can be affec­ted by evol­ving inter­pre­ta­ti­ons of TCJA; chan­ges in the volu­me and mix of pro­fits ear­ned and loca­ti­on of assets across juris­dic­tions with vary­ing tax rates; 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.

▪       Intel’s results can be affec­ted by gains or los­ses from equi­ty secu­ri­ties and inte­rest and other, which can vary depen­ding on gains or los­ses on the chan­ge in fair value, sale, exchan­ge, or impairments of equi­ty and debt invest­ments, inte­rest rates, cash balan­ces, and chan­ges in fair value of deri­va­ti­ve instruments. 

▪       Pro­duct defects or erra­ta (devia­ti­ons from publis­hed spe­ci­fi­ca­ti­ons) can adver­se­ly impact our expen­ses, reve­nues, and reputation.

▪       We or third par­ties regu­lar­ly iden­ti­fy secu­ri­ty vul­nera­bi­li­ties with respect to our pro­ces­sors and other pro­ducts as well as the ope­ra­ting sys­tems and workloads run­ning on them. Secu­ri­ty vul­nera­bi­li­ties and any limi­ta­ti­ons of, or adver­se effects resul­ting from, miti­ga­ti­on tech­ni­ques can adver­se­ly affect our results of ope­ra­ti­ons, finan­cial con­di­ti­on, cus­to­mer rela­ti­ons­hips, pro­spects, and repu­ta­ti­on in a num­ber of ways, any of which may be mate­ri­al, inclu­ding incur­ring signi­fi­cant cos­ts rela­ted to deve­lo­ping and deploy­ing updates and miti­ga­ti­ons, wri­ting down inven­to­ry value, a reduc­tion in the com­pe­ti­ti­ve­ness of our pro­ducts, defen­ding against pro­duct claims and liti­ga­ti­on, respon­ding to regu­la­to­ry inqui­ries or actions, paying dama­ges, addres­sing cus­to­mer satis­fac­tion con­si­de­ra­ti­ons, or taking other reme­di­al steps with respect to third par­ties. Adver­se publi­ci­ty about secu­ri­ty vul­nera­bi­li­ties or miti­ga­ti­ons could dama­ge our repu­ta­ti­on with cus­to­mers or users and redu­ce demand for our pro­ducts and services.

▪       Intel’s results can be affec­ted by liti­ga­ti­on or regu­la­to­ry mat­ters invol­ving intel­lec­tu­al pro­per­ty, stock­hol­der, con­su­mer, anti­trust, com­mer­cial, dis­clo­sure, and other issu­es, as well as by the impact and timing of sett­le­ments and dis­pu­te reso­lu­ti­ons. For examp­le, in the first quar­ter of 2021, Intel accrued a $2.2 bil­li­on char­ge rela­ted to liti­ga­ti­on invol­ving VLSI Tech­no­lo­gy LLC (VLSI). An unfa­vor­able ruling can inclu­de mone­ta­ry dama­ges or an injunc­tion pro­hi­bi­t­ing us from manu­fac­tu­ring or sel­ling one or more pro­ducts, pre­clu­ding par­ti­cu­lar busi­ness prac­ti­ces, impac­ting our abi­li­ty to design pro­ducts, or requi­ring other reme­di­es such as com­pul­so­ry licen­sing of intel­lec­tu­al property.

▪       Intel’s results can be affec­ted by the impact and timing of clo­sing of acqui­si­ti­ons, dive­s­ti­tures, and other signi­fi­cant tran­sac­tions. In addi­ti­on, the­se tran­sac­tions do not always achie­ve our finan­cial or stra­te­gic objec­ti­ves and can dis­rupt our ongo­ing busi­ness and adver­se­ly impact our results of ope­ra­ti­ons. We may not rea­li­ze the expec­ted bene­fits of port­fo­lio decisi­ons due to nume­rous risks, inclu­ding unfa­vor­able pri­ces and terms; chan­ges in mar­ket con­di­ti­ons; limi­ta­ti­ons due to regu­la­to­ry or govern­men­tal appro­vals, con­trac­tu­al terms, or other con­di­ti­ons; and poten­ti­al con­ti­nued finan­cial obli­ga­ti­ons asso­cia­ted with such tran­sac­tions. Risks and uncer­tain­ties rela­ting to the pen­ding sale of our NAND memo­ry busi­ness to SK hynix are descri­bed in our Form 10‑K filed with the SEC on Janu­a­ry 22, 2021.

Detail­ed infor­ma­ti­on regar­ding the­se and other fac­tors that could affect Intel’s busi­ness and results is inclu­ded in Intel’s SEC filings, inclu­ding the company’s most recent reports on Forms 10‑K and 10‑Q, par­ti­cu­lar­ly the “Risk Fac­tors” sec­tions of tho­se reports. Copies of the­se filings may be obtai­ned by visi­t­ing our Inves­tor Rela­ti­ons web­site at www.intc.com or the SEC’s web­site at www.sec.gov.

 

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.

 

Con­ta­cts: Broo­ke Wells Cara Wal­ker
  Inves­tor Relations Media Rela­ti­ons
  503–613-8230 503–696-0831
  brooke.wells@intel.com cara.walker@intel.com

 

 

Intel Cor­po­ra­ti­on

Con­so­li­da­ted Con­den­sed State­ments of Inco­me and Other Information

    Three Mon­ths Ended
(In Mil­li­ons, Except Per Share Amounts; unaudited)   Mar 27, 2021   Mar 28, 2020
Net reve­nue   $ 19,673      $ 19,828   
Cost of sales   8,819      7,812   
Gross mar­gin   10,854      12,016   
Rese­arch and development   3,623      3,275   
Mar­ke­ting, gene­ral and administrative   1,328      1,541   
Rest­ruc­tu­ring and other charges   2,209      162   
Ope­ra­ting expenses   7,160      4,978   
Ope­ra­ting income   3,694      7,038   
Gains (los­ses) on equi­ty invest­ments, net   368      (111)  
Inte­rest and other, net   (156)     (313)  
Inco­me befo­re taxes   3,906      6,614   
Pro­vi­si­on for taxes   545      953   
Net inco­me   $ 3,361      $ 5,661   
         
Ear­nings per share—basic   $ 0.83      $ 1.33   
Ear­nings per share—diluted   $ 0.82      $ 1.31   
         
Weigh­ted average shares of com­mon stock outstanding:        
Basic   4,056      4,266   
Dilu­t­ed   4,096      4,312   

 

    Three Mon­ths Ended
(In Mil­li­ons)   Mar 27, 2021   Mar 28, 2020
Ear­nings per share of com­mon stock information:        
Weigh­ted average shares of com­mon stock outstanding—basic   4,056      4,266   
Dilu­ti­ve effect of employee equi­ty incen­ti­ve plans   40      46   
Weigh­ted average shares of com­mon stock outstanding—diluted   4,096      4,312   
         
Stock buy­back:        
Shares repurcha­sed   40      71   
Cumu­la­ti­ve shares repurcha­sed (in billions)   5.8      5.5   
Remai­ning dol­lars aut­ho­ri­zed for buy­back (in billions)   $ 7.2      $ 19.7   
         
Other infor­ma­ti­on:        
Employees (in thousands)   111.3      111.6   
                 

 

 

Intel Cor­po­ra­ti­on

Con­so­li­da­ted Con­den­sed Balan­ce Sheets

(In Mil­li­ons)   Mar 27, 2021   Dec 26, 2020
Assets   (unau­di­ted)    
Cur­rent assets:        
Cash and cash equivalents   $ 5,192      $ 5,865   
Short-term invest­ments   2,417      2,292   
Tra­ding assets   14,788      15,738   
Accounts receiva­ble   7,208      6,782   
Invent­ories        
Raw mate­ri­als   926      908   
Work in process   5,758      5,693   
Finis­hed goods   1,803      1,826   
    8,487      8,427   
Assets held for sale   5,557      5,400   
Other cur­rent assets   2,124      2,745   
Total cur­rent assets   45,773      47,249   
         
Pro­per­ty, plant and equip­ment, net   57,330      56,584   
Equi­ty investments   5,404      5,152   
Other long-term investments   1,409      2,192   
Good­will   26,971      26,971   
Iden­ti­fied intan­gi­ble assets, net   8,408      9,026   
Other long-term assets   5,327      5,917   
Total assets   $ 150,622      $ 153,091   
         
Lia­bi­li­ties        
Cur­rent liabilities        
Short-term debt   $ 2,647      $ 2,504   
Accounts paya­ble   5,434      5,581   
Accrued com­pen­sa­ti­on and benefits   2,757      3,999   
Other accrued liabilities   13,313      12,670   
Total cur­rent liabilities   24,151      24,754   
Debt   33,237      33,897   
Con­tract liabilities   90      1,367   
Inco­me taxes payable   4,605      4,578   
Defer­red inco­me taxes   3,410      3,843   
Other long-term liabilities   5,322      3,614   
Stock­hol­ders’ equity        
Com­mon stock and capi­tal in excess of par value, 4,038 issued and out­stan­ding (4,062 issued and out­stan­ding as of Decem­ber 26, 2020)   26,272      25,556   
Accu­mu­la­ted other com­pre­hen­si­ve inco­me (loss)   (1,103)     (751)  
Retai­ned earnings   54,638      56,233   
Total stock­hol­ders’ equity   79,807      81,038   
Total lia­bi­li­ties and stock­hol­ders’ equity   $ 150,622      $ 153,091   

 

 

Intel Cor­po­ra­ti­on

Con­so­li­da­ted Con­den­sed State­ments of Cash Flows

    Three Mon­ths Ended
(In Mil­li­ons; unaudited)   Mar 27, 2021   Mar 28, 2020
         
Cash and cash equi­va­lents, begin­ning of period   $ 5,865      $ 4,194   
Cash flows pro­vi­ded by (used for) ope­ra­ting activities:        
Net inco­me   3,361      5,661   
Adjus­t­ments to recon­ci­le net inco­me to net cash pro­vi­ded by ope­ra­ting activities:        
Depre­cia­ti­on   2,454      2,623   
Share-based com­pen­sa­ti­on   425      449   
Rest­ruc­tu­ring and other charges   2,209      162   
Amor­tiz­a­ti­on of intangibles   448      427   
(Gains) los­ses on equi­ty invest­ments, net   (299)     134   
Chan­ges in assets and liabilities:        
Accounts receiva­ble   (426)     (796)  
Invent­ories   180      (548)  
Accounts paya­ble   303      117   
Accrued com­pen­sa­ti­on and benefits   (1,283)     (1,605)  
Pre­paid sup­ply agreements   (1,566)     (87)  
Inco­me taxes   383      753   
Other assets and liabilities   (641)     (1,132)  
Total adjus­t­ments   2,187      497   
Net cash pro­vi­ded by ope­ra­ting activities   5,548      6,158   
Cash flows pro­vi­ded by (used for) inves­ting activities:        
Addi­ti­ons to pro­per­ty, plant and equipment   (3,972)     (3,268)  
Addi­ti­ons to held for sale NAND pro­per­ty, plant and equipment   (416)     —   
Purcha­ses of avail­ab­le-for-sale debt investments   (593)     (513)  
Matu­ri­ties and sales of avail­ab­le-for-sale debt investments   1,232      625   
Purcha­ses of tra­ding assets   (5,981)     (3,897)  
Matu­ri­ties and sales of tra­ding assets   6,777      3,660   
Other inves­ting   406      (343)  
Net cash used for inves­ting activities   (2,547)     (3,736)  
Cash flows pro­vi­ded by (used for) finan­cing activities:        
Issu­an­ce of long-term debt, net of issu­an­ce costs   —      10,247   
Repay­ment of debt and debt conversion   —      (1,075)  
Pro­ceeds from sales of com­mon stock through employee equi­ty incen­ti­ve plans   565      503   
Repurcha­se of com­mon stock   (2,301)     (4,229)  
Pay­ment of divi­dends to stockholders   (1,411)     (1,408)  
Other finan­cing   (527)     726   
Net cash pro­vi­ded by (used for) finan­cing activities   (3,674)     4,764   
Net incre­a­se (decre­a­se) in cash and cash equivalents   (673)     7,186   
Cash and cash equi­va­lents, end of period   $ 5,192      $ 11,380   

 

 

Intel Cor­po­ra­ti­on

Sup­ple­men­tal Ope­ra­ting Seg­ment Results

    Three Mon­ths Ended
(In Mil­li­ons)   Mar 27, 2021   Mar 28, 2020
Net reve­nue        
Data Cen­ter Group        
Plat­form   $ 4,811      $ 6,427   
Adja­cen­cy   753      566   
    5,564      6,993   
Inter­net of Things        
IOTG   914      883   
Mobi­leye   377      254   
    1,291      1,137   
Non-Vola­ti­le Memo­ry Solu­ti­ons Group   1,107      1,338   
Pro­gramm­a­ble Solu­ti­ons Group   486      519   
Cli­ent Com­pu­ting Group        
Plat­form   9,617      8,712   
Adja­cen­cy   988      1,063   
    10,605      9,775   
All other   620      66   
Total net revenue   $ 19,673      $ 19,828   
         
Ope­ra­ting inco­me (loss)        
Data Cen­ter Group   $ 1,273      $ 3,492   
Inter­net of Things        
IOTG   212      243   
Mobi­leye   147      88   
    359      331   
Non-Vola­ti­le Memo­ry Solu­ti­ons Group   171      (66)  
Pro­gramm­a­ble Solu­ti­ons Group   88      97   
Cli­ent Com­pu­ting Group   4,120      4,225   
All other   (2,317)     (1,041)  
Total ope­ra­ting income   $ 3,694      $ 7,038   

 

We deri­ve a sub­stan­ti­al majo­ri­ty of our reve­nue from plat­form pro­ducts, which are our princi­pal pro­ducts and con­si­de­red as one pro­duct class. We offer plat­form pro­ducts that incor­po­ra­te various com­pon­ents and tech­no­lo­gies, inclu­ding a micro­pro­ces­sor and chip­set, a stand-alo­ne SoC, or a mul­ti­chip packa­ge. Plat­form pro­ducts are used in various form fac­tors across our DCG, IOTG, and CCG ope­ra­ting seg­ments. Our non-plat­form, or adja­cent pro­ducts, can be com­bi­ned with plat­form pro­ducts to form com­pre­hen­si­ve plat­form solu­ti­ons to meet cus­to­mer needs.

Reve­nue for our repor­ta­ble and non-repor­ta­ble ope­ra­ting seg­ments is pri­ma­ri­ly rela­ted to the fol­lowing pro­duct lines:

▪       DCG inclu­des workload-opti­mi­zed plat­forms and rela­ted pro­ducts desi­gned for cloud ser­vice pro­vi­ders, enter­pri­se and government, and com­mu­ni­ca­ti­ons ser­vice pro­vi­ders mar­ket seg­ments. In 2021, the DCG ope­ra­ting seg­ment inclu­des the results of our Intel® Opta­ne™ memo­ry business.

▪       IOTG inclu­des high-per­for­mance com­pu­te solu­ti­ons for tar­ge­ted ver­ti­cals and embed­ded app­li­ca­ti­ons in mar­ket seg­ments such as retail, indus­tri­al, health­ca­re, and vision. 

▪       Mobi­leye inclu­des deve­lo­p­ment of com­pu­ter visi­on and machi­ne lear­ning-based sen­sing, data ana­ly­sis, loca­liz­a­ti­on, map­ping, and dri­ving poli­cy tech­no­lo­gy for advan­ced dri­ver assi­s­tance sys­tems (ADAS) and auto­no­mous driving.

▪       NSG inclu­des deve­lo­p­ment of sto­rage solu­ti­ons using our inno­va­ti­ve Intel® 3D NAND tech­no­lo­gy, pri­ma­ri­ly used in SSDs. In 2021, the NSG ope­ra­ting seg­ment no lon­ger inclu­des the results of our Intel Opta­ne memo­ry business.

▪       PSG inclu­des pro­gramm­a­ble semi­con­duc­tors, pri­ma­ri­ly FPGAs and struc­tu­red ASICs, and rela­ted pro­ducts for com­mu­ni­ca­ti­ons, cloud and enter­pri­se, and embed­ded mar­ket segments.

▪       CCG inclu­des plat­forms desi­gned for end-user form fac­tors, focu­sing on hig­her growth seg­ments of 2‑in‑1, thin-and-light, com­mer­cial and gaming, and gro­wing adja­cen­ci­es such as con­nec­ti­vi­ty and graphics.

We have sales and mar­ke­ting, manu­fac­tu­ring, engi­nee­ring, finan­ce, and admi­nis­tra­ti­on groups. Expen­ses for the­se groups are gene­ral­ly allo­ca­ted to the ope­ra­ting segments.

We have an “all other” cate­go­ry that inclu­des reve­nue, expen­ses, and char­ges such as:

▪       results of ope­ra­ti­ons from non-repor­ta­ble seg­ments not other­wi­se presented;

▪       his­to­ri­cal results of ope­ra­ti­ons from dive­s­ted businesses;

▪       results of ope­ra­ti­ons of start-up busi­nes­ses that sup­port our initia­ti­ves, inclu­ding our found­ry business;

▪       amounts inclu­ded wit­hin rest­ruc­tu­ring and other charges;

▪       a por­ti­on of employee bene­fits, com­pen­sa­ti­on, and other expen­ses not allo­ca­ted to the ope­ra­ting seg­ments; and

▪       acqui­si­ti­on-rela­ted cos­ts, inclu­ding amor­tiz­a­ti­on and any impairment of acqui­si­ti­on-rela­ted intan­gi­bles and goodwill.

 

Intel Cor­po­ra­ti­on

Sup­ple­men­tal Plat­form Reve­nue Information

    Q1 2021   Q1 2021
    com­pa­red to

Q4 2020

  com­pa­red to

Q1 2020

Data Cen­ter Group        
Plat­form volumes   (9)%   (13)%
Plat­form average sel­ling prices   —%   (14)%
Adja­cen­cy revenue   (5)%   33%
         
Cli­ent Com­pu­ting Group        
Desk­top plat­form volumes   (19)%   (4)%
Desk­top plat­form average sel­ling prices   4%   (5)%
Note­book plat­form volumes   5%   54%
Note­book plat­form average sel­ling prices   (4)%   (23)%
Adja­cen­cy revenue   (1)%   (7)%

 

 

 

 

Intel Cor­po­ra­ti­on

Explana­ti­on of Non-GAAP Measures

In addi­ti­on to dis­clo­sing finan­cial results in accordance with U.S. GAAP, this docu­ment con­tains refe­ren­ces to the 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. Cer­tain of the­se non-GAAP finan­cial mea­su­res are used in our per­for­mance-based RSUs and our annu­al cash bonus plan.

Our non-GAAP finan­cial mea­su­res reflect adjus­t­ments based on one or more of the fol­lowing items, as well as the rela­ted inco­me tax effects whe­re app­li­ca­ble. Inco­me tax effects have been cal­cu­la­ted using an appro­pria­te tax rate for each adjus­t­ment. The­se non-GAAP finan­cial mea­su­res should not be con­si­de­red a sub­sti­tu­te for, or supe­ri­or to, finan­cial mea­su­res cal­cu­la­ted in accordance with U.S. GAAP, and the finan­cial results cal­cu­la­ted in accordance with U.S. GAAP and recon­ci­lia­ti­ons from the­se results should be care­ful­ly evaluated.

Non-GAAP adjus­t­ment or measure Defi­ni­ti­on Use­ful­ness to manage­ment and investors
NAND memo­ry business Our NAND memo­ry busi­ness is sub­ject to a pen­ding sale to SK hynix, as announ­ced in Octo­ber 2020. We exclu­de the impact of our NAND memo­ry busi­ness in cer­tain non-GAAP mea­su­res becau­se the­se adjus­t­ments reflect how manage­ment cur­r­ent­ly views the core ope­ra­ti­ons of the com­pa­ny. While the sale of the NAND memo­ry busi­ness is still pen­ding and sub­ject to clo­sing con­di­ti­ons, manage­ment does not cur­r­ent­ly view the busi­ness as part of the company’s core ope­ra­ti­ons or its long-term stra­te­gic direc­tion. We belie­ve the­se adjus­t­ments pro­vi­de inves­tors with a use­ful view, through the eyes of manage­ment, of the company’s core busi­ness model and how manage­ment cur­r­ent­ly eva­lua­tes core ope­ra­tio­nal per­for­mance. We belie­ve they also pro­vi­de inves­tors with an addi­tio­nal means to under­stand the poten­ti­al impact of the dive­s­ti­tu­re over time. In making the­se adjus­t­ments, we have not made any chan­ges to our methods for mea­su­ring and cal­cu­la­ting reve­nue or other finan­cial state­ment amounts.
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 U.S. 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.
Rest­ruc­tu­ring and other charges Rest­ruc­tu­ring char­ges are cos­ts asso­cia­ted with a for­mal rest­ruc­tu­ring plan and are pri­ma­ri­ly rela­ted to employee sever­an­ce and bene­fit arran­ge­ments. Other char­ges inclu­de a char­ge rela­ted to the VLSI liti­ga­ti­on, asset impairments, pen­si­on char­ges, and cos­ts asso­cia­ted with rest­ruc­tu­ring activity. 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 cur­rent ope­ra­ting per­for­mance. The­se adjus­t­ments faci­li­ta­te a use­ful eva­lua­ti­on of our cur­rent ope­ra­ting per­for­mance and com­pa­ri­sons to past ope­ra­ting results and pro­vi­de inves­tors with addi­tio­nal means to eva­lua­te expen­se trends.
Gains (los­ses) from divestiture Gains or los­ses are reco­gni­zed at the clo­se of a divestiture. 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.
Ongo­ing mark-to-mar­ket on mar­ket­a­ble equi­ty securities After the initi­al mark-to-mar­ket adjus­t­ment is recor­ded upon a secu­ri­ty beco­m­ing mar­ket­a­ble, gains and los­ses are reco­gni­zed from ongo­ing mark-to-mar­ket adjus­t­ments of our mar­ket­a­ble equi­ty securities. We exclu­de the­se ongo­ing gains and los­ses for pur­po­ses of cal­cu­la­ting cer­tain non-GAAP mea­su­res becau­se we do not belie­ve this vola­ti­li­ty cor­re­la­tes to our core ope­ra­tio­nal per­for­mance. The­se adjus­t­ments faci­li­ta­te a use­ful eva­lua­ti­on of our cur­rent ope­ra­ting per­for­mance and com­pa­ri­sons to past ope­ra­ting results.
Free cash flow We refe­rence a non-GAAP finan­cial mea­su­re of free cash flow, which is used by manage­ment when asses­sing our sources of liqui­di­ty, capi­tal resour­ces, and qua­li­ty of ear­nings. Free cash flow is ope­ra­ting cash flow adjus­ted to exclu­de addi­ti­ons to pro­per­ty, plant and equipment. This non-GAAP finan­cial mea­su­re is hel­pful in under­stan­ding our capi­tal requi­re­ments and pro­vi­des an addi­tio­nal means to eva­lua­te the cash flow trends of our busi­ness. In cal­cu­la­ting free cash flow, we do not sub­tract addi­ti­ons to held for sale NAND pro­per­ty, plant and equip­ment becau­se the addi­ti­ons are not repre­sen­ta­ti­ve of our long-term capi­tal requi­re­ments and we expect the­se assets to be sold.

 

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 U.S. GAAP finan­cial mea­su­re. The­se non-GAAP finan­cial mea­su­res should not be con­si­de­red a sub­sti­tu­te for, or supe­ri­or to, finan­cial mea­su­res cal­cu­la­ted in accordance with U.S. GAAP, and the recon­ci­lia­ti­ons from U.S. 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 U.S. 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
(In Mil­li­ons, Except Per Share Amounts)   Mar 27, 2021   Mar 28, 2020
GAAP net revenue   $ 19,673      $ 19,828   
NAND memo­ry business   (1,107)     (1,241)  
Non-GAAP net revenue   $ 18,566      $ 18,587   
         
GAAP gross margin   $ 10,854      $ 12,016   
Acqui­si­ti­on-rela­ted adjustments   312      289   
NAND memo­ry business   (317)     (317)  
Non-GAAP gross margin   $ 10,849      $ 11,988   
         
GAAP gross mar­gin percentage   55.2  %   60.6  %
Acqui­si­ti­on-rela­ted adjustments   1.6  %   1.5  %
NAND memo­ry business   1.7  %   2.4  %
Non-GAAP gross mar­gin per­cen­ta­ge1   58.4  %   64.5  %
         
GAAP R&D and MG&A   $ 4,951      $ 4,816   
Acqui­si­ti­on-rela­ted adjustments   (52)     (50)  
NAND memo­ry business   (146)     (127)  
Non-GAAP R&D and MG&A   $ 4,753      $ 4,639   
         
GAAP ope­ra­ting income   $ 3,694      $ 7,038   
Acqui­si­ti­on-rela­ted adjustments   364      339   
Rest­ruc­tu­ring and other charges   2,209      162   
NAND memo­ry business   (171)     (190)  
Non-GAAP ope­ra­ting income   $ 6,096      $ 7,349   
         
GAAP ope­ra­ting margin   18.8  %   35.5  %
Acqui­si­ti­on-rela­ted adjustments   1.9  %   1.7  %
Rest­ruc­tu­ring and other charges   11.2  %   0.8  %
NAND memo­ry business   1.0  %   1.5  %
Non-GAAP ope­ra­ting mar­gin1   32.8  %   39.5  %
         
GAAP tax rate   14.0  %   14.4  %
Inco­me tax effects   (0.3) %   (0.7) %
Non-GAAP tax rate   13.7  %   13.7  %
         
GAAP net income   $ 3,361      $ 5,661   
Acqui­si­ti­on-rela­ted adjustments   364      339   
Rest­ruc­tu­ring and other charges   2,209      162   
Ongo­ing mark-to-mar­ket on mar­ket­a­ble equi­ty securities   291      103   
NAND memo­ry business   (171)     (190)  
Inco­me tax effects   (359)     (12)  
Non-GAAP net income   $ 5,695      $ 6,063   
1  Our recon­ci­lia­ti­ons of GAAP to non-GAAP gross mar­gin and ope­ra­ting mar­gin per­cen­ta­ge reflect the exclu­si­on of our NAND memo­ry               busi­ness from net revenue.
(In Mil­li­ons, Except Per Share Amounts)   Mar 27, 2021   Mar 28, 2020
GAAP ear­nings per share—diluted   $ 0.82      $ 1.31   
Acqui­si­ti­on-rela­ted adjustments   0.09      0.08   
Rest­ruc­tu­ring and other charges   0.54      0.04   
Ongo­ing mark-to-mar­ket on mar­ket­a­ble equi­ty securities   0.07      0.03   
NAND memo­ry business   (0.04)     (0.05)  
Inco­me tax effects   (0.09)     —   
Non-GAAP ear­nings per share—diluted   $ 1.39      $ 1.41   

 

    Three Mon­ths Ended
(In Mil­li­ons)   Mar 27, 2021
GAAP cash from operations   $ 5,548   
Addi­ti­ons to pro­per­ty, plant and equipment   (3,972)  
Free cash flow   $ 1,576   
GAAP cash used for inves­ting activities   $ (2,547)  
GAAP cash pro­vi­ded by (used for) finan­cing activities   $ (3,674)  

 

 

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 U.S. GAAP finan­cial mea­su­re. The­se non-GAAP finan­cial mea­su­res should not be con­si­de­red a sub­sti­tu­te for, or supe­ri­or to, finan­cial mea­su­res cal­cu­la­ted in accordance with U.S. GAAP, and the finan­cial out­look pre­pa­red in accordance with U.S. 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 U.S. 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.

    Q2 2021 Outlook   Full-Year 2021
    Appro­xi­mate­ly   Appro­xi­mate­ly
GAAP net revenue   $ 18.9      $ 77.0   
NAND memo­ry business   (1.1)     (4.5)  
Non-GAAP net revenue   $ 17.8      $ 72.5   
         
GAAP gross margin   54.9  %   54.5  %
Amor­tiz­a­ti­on of acqui­si­ti­on-rela­ted intan­gi­ble assets   1.6  %   1.6  %
NAND memo­ry business   0.5  %   0.4  %
Non-GAAP gross mar­gin1   57.0  %   56.5  %
         
GAAP tax rate   13  %   19  %
Inco­me tax effects   —  %   (6) %
Non-GAAP tax rate   13  %   13  %
         
GAAP ear­nings per share—diluted   $ 1.05      $ 4.00   
Acqui­si­ti­on-rela­ted adjustments   0.09      0.35   
Rest­ruc­tu­ring and other charges   0.01      0.57   
(Gains) los­ses from divestiture   —      (0.24)  
Ongo­ing mark-to-mar­ket on mar­ket­a­ble equi­ty securities   —      0.06   
NAND memo­ry business   (0.10)     (0.42)  
Inco­me tax effects   —      0.28   
Non-GAAP ear­nings per share—diluted   $ 1.05      $ 4.60   

1    Our recon­ci­lia­ti­on of GAAP Out­look to non-GAAP Out­look gross mar­gin per­cen­ta­ge reflects the exclu­si­on of our NAND memo­ry busi­ness from net revenue.

 

(In Bil­li­ons)   Full-Year 2021
GAAP cash from operations   $ 30.2   
Addi­ti­ons to pro­per­ty, plant and equipment   $ 19.7   
Free cash flow   $ 10.5   

Released Apr 22, 2021 • 4:00 PM EDT

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