Intel Reports First-Quarter 2023 Financial Results

NEWS SUMMARY

  • First-quar짯ter reve짯nue of $11.7 bil짯li짯on, down 36% year over year (YoY).
  • First-quar짯ter GAAP ear짯nings (loss) per share (EPS) attri짯bu짯ta짯ble to Intel was $(0.66); non-GAAP EPS attri짯bu짯ta짯ble to Intel was $(0.04).
  • Fore짯cas짯ting second-quar짯ter 2023 reve짯nue of $11.5 bil짯li짯on to $12.5 bil짯li짯on; expec짯ting second-quar짯ter EPS of $(0.62); non-GAAP EPS of $(0.04).

 

SANTA CLARA, Calif., April 27, 2023 Intel Cor짯po짯ra짯ti짯on today repor짯ted first-quar짯ter 2023 finan짯cial results.

We deli짯ver짯ed solid first-quar짯ter results, repre짯sen짯ting ste짯ady pro짯gress with our trans짯for짯ma짯ti짯on, said Pat Gel짯sin짯ger, Intel CEO. 쏻e hit key exe짯cu짯ti짯on mile짯sto짯nes in our data cen짯ter road짯map and demons짯tra짯ted the health of the pro짯cess tech짯no짯lo짯gy under짯pin짯ning it. While we remain cau짯tious on the macroe짯co짯no짯mic out짯look, we are focu짯sed on what we can con짯trol as we deli짯ver on IDM 2.0: dri짯ving con짯sis짯tent exe짯cu짯ti짯on across pro짯cess and pro짯duct road짯maps and advan짯cing our foundry busi짯ness to best posi짯ti짯on us to capi짯ta짯li짯ze on the $1 tril짯li짯on mar짯ket oppor짯tu짯ni짯ty ahead.

David Zins짯ner, Intel CFO, said, 쏻e excee짯ded our first-quar짯ter expec짯ta짯ti짯ons on the top and bot짯tom line, and con짯tin짯ued to be disci짯pli짯ned on expen짯se manage짯ment as part of our com짯mit짯ment to dri짯ve effi짯ci짯en짯ci짯es and cost savings. At the same time, we are prio짯ri짯tiz짯ing the invest짯ments nee짯ded to advan짯ce our stra짯tegy and estab짯lish an inter짯nal foundry model, one of the most con짯se짯quen짯ti짯al steps we are taking to deli짯ver on IDM 2.0.

 

Q1 2023 Finan짯cial Highlights

  GAAP   Non-GAAP
  Q1 2023 Q1 2022 vs. Q1 2022   Q1 2023 Q1 2022 vs. Q1 2022
Reve짯nue ($B) $11.7 $18.4 down 36%        
Gross Mar짯gin 34.2% 50.4% down 16.2 ppts   38.4% 53.1% down 14.7 ppts
R&D and MG&A ($B) $5.4 $6.1 down 11%   $4.8 $5.5 down 13%
Ope짯ra짯ting Margin (12.5)% 23.7% down 36.2 ppts   (2.5)% 23.1% down 25.6 ppts
Tax Rate (139.0)% 16.0% n/m1   13.0% 13.0%
Net Inco짯me (loss) Attri짯bu짯ta짯ble to Intel ($B) $(2.8) $8.1 down 134%   $(0.2) $3.6 down 105%
Ear짯nings (loss) Per Share  Attri짯bu짯ta짯ble to Intel $(0.66) $1.98 down 133%   $(0.04) $0.87 down 105%

In the first quar짯ter, the com짯pa짯ny used $(1.8) bil짯li짯on in cash from ope짯ra짯ti짯ons and paid divi짯dends of $1.5 billion.

 

Busi짯ness Unit Summary

Intel pre짯vious짯ly announ짯ced the orga짯niza짯tio짯nal chan짯ge to inte짯gra짯te its Acce짯le짯ra짯ted Com짯pu짯ting Sys짯tems and Gra짯phics Group into its Cli짯ent Com짯pu짯ting Group and Data Cen짯ter and AI Group. This chan짯ge is inten짯ded to dri짯ve a more effec짯ti짯ve go-to-mar짯ket capa짯bi짯li짯ty and to acce짯le짯ra짯te the sca짯le of the짯se busi짯nesses, while also redu짯cing cos짯ts. As a result, the com짯pa짯ny modi짯fied its seg짯ment report짯ing in the first quar짯ter of 2023 to ali짯gn to this and cer짯tain other busi짯ness reor짯ga짯niza짯ti짯ons. All pri짯or-peri짯od seg짯ment data has been retro짯s짯pec짯tively adjus짯ted to reflect the way the com짯pa짯ny intern짯al짯ly recei짯ves infor짯ma짯ti짯on and mana짯ges and moni짯tors ope짯ra짯ting seg짯ment per짯for짯mance start짯ing in fis짯cal year 2023.

Busi짯ness Unit Reve짯nue and Trends   Q1 2023   vs. Q1 2022  
Cli짯ent Com짯pu짯ting Group (CCG)   $5.8 bil짯li짯on   down 38%  
Data Cen짯ter and AI (DCAI)   $3.7 bil짯li짯on   down 39%  
Net짯work and Edge (NEX)   $1.5 bil짯li짯on   down 30%  
Mobi짯leye   $458 mil짯li짯on   up 16%  
Intel Foundry Ser짯vices (IFS)   $118 mil짯li짯on   down 24%  

Busi짯ness Highlights

 

뼧       Intel con짯ti짯nues to be on track to meet its goal of achie짯ving five nodes in four years, with two of the five nodes near짯ly com짯ple짯te. Intel 7 is in high-volu짯me manu짯fac짯tu짯ring and CCG셲 Mete짯or Lake pro짯duct on Intel 4 is ram짯ping pro짯duc짯tion wafer starts for an expec짯ted launch in the second half of 2023. Intel 3, Intel 20A, and Intel 18A remain on track.

뼧       DCAI ship짯ped its 4th Gen Intel Xeon Sca짯lable pro짯ces짯sors (code-named Sap짯phi짯re Rapids), a cri짯ti짯cal part of Intel셲 hete짯ro짯ge짯neous hard짯ware and soft짯ware port짯fo짯lio to acce짯le짯ra짯te real-world workloads, inclu짯ding AI, as it looks to tru짯ly demo짯cra짯ti짯ze AI through an open and secu짯re eco짯sys짯tem approach.

뼧       DCAI also announ짯ced it expects to deli짯ver Intel셲 5th Gen Xeon Sca짯lable pro짯ces짯sor, Emer짯ald Rapids, later this year. In addi짯ti짯on, the busi짯ness nar짯ro짯wed the deli짯very win짯dow for Sier짯ra Forest, which is expec짯ted to ship to cus짯to짯mers in the first half of 2024, with Gra짯ni짯te Rapids expec짯ted to fol짯low short짯ly the짯re짯af짯ter. Cle짯ar짯wa짯ter Forest, the fol짯low-on to Sier짯ra Forest, is expec짯ted to ship in 2025, and will be manu짯fac짯tu짯red on Intel 18A, the node desi짯gned to achie짯ve pro짯cess lea짯der짯ship and repre짯sen짯ting the cul짯mi짯na짯ti짯on of the company셲 five-nodes-in-four-years stra짯tegy. Addi짯tio짯nal짯ly, the Pro짯gramma짯ble Solu짯ti짯ons Group (PSG) had an all-time record reve짯nue quar짯ter in Q1.

뼧       IFS and Arm announ짯ced a mul짯ti짯ge짯ne짯ra짯ti짯on agree짯ment to enable chip desi짯gners to build low-power com짯pu짯te sys짯tem-on-chips (SoCs) on the Intel 18A pro짯cess. Intel deli짯ver짯ed and sup짯pli짯ed the first mul짯ti-chip packa짯ge (MCP) pro짯to짯ty짯pes crea짯ted under the U.S. Depart짯ment of Defense셲 Sta짯te-of-the-Art Hete짯ro짯ge짯neous Inte짯gra짯ted Pack짯a짯ging (SHIP) pro짯gram to BAE Sys짯tems six quar짯ters ahead of sche짯du짯le, show짯ca짯sing the company셲 com짯mit짯ment to cus짯to짯mers while fur짯ther sup짯port짯ing the DOD셲 mis짯si짯on to return the U.S. to a lea짯ding role in the microelec짯tro짯nics ecosystem.

뼧       CCG intro짯du짯ced the 13th Gen Intel Core꽓 mobi짯le pro짯ces짯sor fami짯ly, led by the launch of the first 24-core pro짯ces짯sor for a lap짯top and world셲 fas짯test mobi짯le pro짯ces짯sor. Intel also intro짯du짯ced the new Intel vPro plat짯form powered by the full lin짯e짯up of 13th Gen Intel Core pro짯ces짯sors. In 2023, the expan짯si짯ve com짯mer짯cial port짯fo짯lio is expec짯ted to deli짯ver more than 170 note짯books, desk짯tops, and ent짯ry work짯sta짯tions from part짯ners inclu짯ding Acer, ASUS, Dell, HP, Leno짯vo, Fuji짯tsu, Pana짯so짯nic, and Sam짯sung Electronics.

뼧       NEX laun짯ched its 4th Gen Intel Xeon Sca짯lable pro짯ces짯sors with Intel vRAN Boost, deli짯ve짯ring two times the capa짯ci짯ty gains gene짯ra짯ti짯on-over-gene짯ra짯ti짯on within the same power enve짯lo짯pe1 and up to an addi짯tio짯nal 20% power savings2 with inte짯gra짯ted acce짯le짯ra짯ti짯on, with exten짯si짯ve indus짯try sup짯port from Erics짯son, Veri짯zon, Tele짯fo짯ni짯ca, and Voda짯fone, among many others.

뼧       Mobi짯leye con짯ti짯nues to grow signi짯fi짯cant짯ly fas짯ter than under짯ly짯ing auto짯mo짯ti짯ve end-mar짯kets, achie짯ving record first quar짯ter revenue.

 

Busi짯ness Outlook

Intel셲 gui짯dance for the second quar짯ter of 2023 includes both GAAP and non-GAAP esti짯ma짯tes. Recon짯ci짯lia짯ti짯ons bet짯ween GAAP and non-GAAP finan짯cial mea짯su짯res are included below.*

Q2 2023   GAAP*   Non-GAAP*
    Appro짯xi짯m짯ate짯ly   Appro짯xi짯m짯ate짯ly
Reve짯nue   $11.512.5 bil짯li짯on   $11.512.5 bil짯li짯on^
Gross mar짯gin   33.2%   37.5%
Tax rate   (85)%   13%
Ear짯nings (loss) per share attri짯bu짯ta짯ble to Intel diluted   $(0.62)   $(0.04)

 

Actu짯al results may dif짯fer mate짯ri짯al짯ly from Intel셲 Busi짯ness Out짯look as a result of, among other things, the fac짯tors descri짯bed under 쏤or짯ward-Loo짯king State짯ments below.

*Effec짯ti짯ve Janu짯ary 2023, Intel increased the esti짯ma짯ted useful life of cer짯tain pro짯duc짯tion machi짯nery and equip짯ment from five years to eight years. When com짯pared to the esti짯ma짯ted useful life in place as of the end of 2022, we expect total depre짯cia짯ti짯on expen짯se in 2023 to be redu짯ced by $4.1 bil짯li짯on. We expect this chan짯ge will result in an appro짯xi짯m짯ate짯ly $2.3 bil짯li짯on increase to gross mar짯gin, a $400 mil짯li짯on decrease in R&D expen짯ses, and a $1.4 bil짯li짯on decrease in ending inven짯to짯ry values. Intel셲 Q2 2023 out짯look includes an appro짯xi짯m짯ate짯ly $500 mil짯li짯on bene짯fit to ope짯ra짯ting mar짯gin or $0.10 bene짯fit to EPS from this chan짯ge, split appro짯xi짯m짯ate짯ly 80% to cost of sales and 20% to ope짯ra짯ting expen짯ses. The chan짯ge in depre짯cia짯ble life will not be coun짯ted toward the $3 bil짯li짯on in cost savings in 2023 or the $8 bil짯li짯on to $10 bil짯li짯on exi짯ting 2025 com짯mu짯ni짯ca짯ted at Q3 2022 earnings. 

 

Ear짯nings Webcast

Intel will hold a public web짯cast at 2 p.m. PST today to dis짯cuss the results for its first quar짯ter 2023. The live public web짯cast can be acces짯sed on Intel셲 Inves짯tor Rela짯ti짯ons web짯site at www.intc.com. The cor짯re짯spon짯ding ear짯nings pre짯sen짯ta짯ti짯on and web짯cast replay will also be available on the site.

 

 

For짯ward-Loo짯king Statements

This release con짯ta짯ins for짯ward-loo짯king state짯ments that invol짯ve a num짯ber of risks and uncer짯tain짯ties. Words such as 쏿cce짯le짯ra짯te, 쏿chie짯ve, 쏿im, 쏿mbi짯ti짯ons, 쏿nti짯ci짯pa짯te, 쐀elie짯ve, 쐁om짯mit짯ted, 쐁on짯ti짯nue, 쐁ould, 쐂esi짯gned, 쐃sti짯ma짯te, 쐃xpect, 쐄ore짯cast, 쐄uture, 쐅oals, 쐅row, 쐅ui짯dance, 쐇ntend, 쐋ikely, 쐌ay, 쐌ight, 쐌ile짯sto짯nes, 쐍ext gene짯ra짯ti짯on, 쐎bjec짯ti짯ve, 쐎n track, 쐎ppor짯tu짯ni짯ty, 쐎ut짯look, 쐏en짯ding, 쐏lan, 쐏osi짯ti짯on, 쐏oten짯ti짯al, 쐏os짯si짯ble, 쐏re짯dict, 쐏ro짯gress, 쐒amp, 쐒oad짯map, 쐓eeks, 쐓hould, 쐓tri짯ve, 쐔ar짯gets, 쐔o be, 쐕pco짯ming, 쐗ill, 쐗ould, and varia짯ti짯ons of such words and simi짯lar expres짯si짯ons are inten짯ded to iden짯ti짯fy such for짯ward-loo짯king state짯ments, which may include state짯ments regarding:

  • our busi짯ness plans and stra짯tegy and anti짯ci짯pa짯ted bene짯fits the짯r짯e짯f짯rom, inclu짯ding our IDM 2.0 stra짯tegy, our part짯ner짯ship with Brook짯field, the tran짯si짯ti짯on to an inter짯nal foundry model, and updates to our report짯ing structure;
  • pro짯jec짯tions of our future finan짯cial per짯for짯mance, inclu짯ding future reve짯nue, gross mar짯gins, capi짯tal expen짯dit짯ures, and cash flows;
  • pro짯jec짯ted cos짯ts and yield trends;
  • future cash requi짯re짯ments and the avai짯la짯bi짯li짯ty, uses, suf짯fi짯ci짯en짯cy, and cost of capi짯tal resour짯ces, and sources of fun짯ding, inclu짯ding future capi짯tal and R&D invest짯ments, cre짯dit rating expec짯ta짯ti짯ons, and expec짯ted returns to stock짯hol짯ders such as stock repurcha짯ses and dividends;
  • future pro짯ducts, ser짯vices and tech짯no짯lo짯gies, and the expec짯ted goals, time짯line, ramps, pro짯gress, avai짯la짯bi짯li짯ty, pro짯duc짯tion, regu짯la짯ti짯on and bene짯fits of such pro짯ducts, ser짯vices and tech짯no짯lo짯gies, inclu짯ding future pro짯cess nodes and pack짯a짯ging tech짯no짯lo짯gy, pro짯duct road짯maps, sche짯du짯les, future pro짯duct archi짯tec짯tures, expec짯ta짯ti짯ons regar짯ding pro짯cess per짯for짯mance, per-watt pari짯ty, and metrics and expec짯ta짯ti짯ons regar짯ding pro짯duct and pro짯cess leadership;
  • invest짯ment plans, and impacts of invest짯ment plans, inclu짯ding in the US and abroad;
  • inter짯nal and exter짯nal manu짯fac짯tu짯ring plans, inclu짯ding future inter짯nal manu짯fac짯tu짯ring volu짯mes, manu짯fac짯tu짯ring expan짯si짯on plans and the finan짯cing the짯r짯e짯for, and exter짯nal foundry usage;
  • future pro짯duc짯tion capa짯ci짯ty and pro짯duct supply;
  • sup짯p짯ly expec짯ta짯ti짯ons, inclu짯ding regar짯ding cons짯traints, limi짯ta짯ti짯ons, pri짯cing, and indus짯try shortages;
  • plans and goals rela짯ted to Intel셲 foundry busi짯ness, inclu짯ding with respect to future manu짯fac짯tu짯ring capa짯ci짯ty and foundry ser짯vice offe짯rings, inclu짯ding tech짯no짯lo짯gy and IP offerings;
  • expec짯ted timing and impact of acqui짯si짯ti짯ons, dives짯ti짯tures, and other signi짯fi짯cant tran짯sac짯tions, inclu짯ding state짯ments rela짯ting to the com짯ple짯ti짯on of our acqui짯si짯ti짯on of Tower Semi짯con짯duc짯tor Ltd. and the sale of our NAND memo짯ry business;
  • expec짯ted com짯ple짯ti짯on and impacts of res짯truc짯tu짯ring acti짯vi짯ties and cost-saving or effi짯ci짯en짯cy initia짯ti짯ves, inclu짯ding tho짯se rela짯ted to the 2022 Res짯truc짯tu짯ring Program;
  • future social and envi짯ron짯men짯tal per짯for짯mance, goals, mea짯su짯res and strategies;
  • our anti짯ci짯pa짯ted growth, future mar짯ket share, and trends in our busi짯nesses and operations;
  • pro짯jec짯ted growth and trends in mar짯kets rele짯vant to our busi짯nesses, inclu짯ding total addressa짯ble mar짯ket (TAM);
  • anti짯ci짯pa짯ted trends and impacts rela짯ted to indus짯try com짯po짯nent, sub짯stra짯te, and foundry capa짯ci짯ty uti짯liza짯ti짯on, shorta짯ges and constraints;
  • expec짯ta짯ti짯ons regar짯ding govern짯ment incentives;
  • future tech짯no짯lo짯gy trends;
  • future macro envi짯ron짯men짯tal and eco짯no짯mic con짯di짯ti짯ons, inclu짯ding regio짯nal or glo짯bal down짯turns or recessions;
  • future respon짯ses to and effects of COVID-19, inclu짯ding as to manu짯fac짯tu짯ring, trans짯por짯ta짯ti짯on and ope짯ra짯tio짯nal rest짯ric짯tions and dis짯rup짯ti짯ons and broa짯der eco짯no짯mic conditions;
  • geo짯po짯li짯ti짯cal con짯di짯ti짯ons, inclu짯ding the impacts of Russia셲 war on Ukraine;
  • tax- and accoun짯ting-rela짯ted expectations;
  • expec짯ta짯ti짯ons regar짯ding our rela짯ti짯onships with cer짯tain sanc짯tion짯ed par짯ties; and
  • other cha짯rac짯te짯riza짯ti짯ons of future events or circumstances.

Such state짯ments invol짯ve many risks and uncer짯tain짯ties that could cau짯se our actu짯al results to dif짯fer mate짯ri짯al짯ly from tho짯se expres짯sed or impli짯ed, including:

  • chan짯ges in demand for our products;
  • chan짯ges in pro짯duct mix;
  • the com짯ple짯xi짯ty and fixed cost natu짯re of our manu짯fac짯tu짯ring operations;
  • the high level of com짯pe짯ti짯ti짯on and rapid tech짯no짯lo짯gi짯cal chan짯ge in our industry;
  • the signi짯fi짯cant upfront invest짯ments in R&D and our busi짯ness, pro짯ducts, tech짯no짯lo짯gies, and manu짯fac짯tu짯ring capabilities;
  • vul짯nerabi짯li짯ty to new pro짯duct deve짯lo짯p짯ment and manu짯fac짯tu짯ring-rela짯ted risks, inclu짯ding pro짯duct defects or erra짯ta, par짯ti짯cu짯lar짯ly as we deve짯lop next gene짯ra짯ti짯on pro짯ducts and imple짯ment next gene짯ra짯ti짯on pro짯cess technologies;
  • risks asso짯cia짯ted with high짯ly com짯plex glo짯bal sup짯p짯ly chain, inclu짯ding from dis짯rup짯ti짯ons, delays, trade ten짯si짯ons, or shortages;
  • sales-rela짯ted risks, inclu짯ding cus짯to짯mer con짯cen짯tra짯ti짯on and the use of dis짯tri짯bu짯tors and other third parties;
  • poten짯ti짯al secu짯ri짯ty vul짯nerabi짯li짯ties in our products;
  • cyber짯se짯cu짯ri짯ty and pri짯va짯cy risks;
  • invest짯ment and tran짯sac짯tion risk;
  • IP risks and risks asso짯cia짯ted with liti짯ga짯ti짯on and regu짯la짯to짯ry proceedings;
  • evol짯ving regu짯la짯to짯ry and legal requi짯re짯ments across many jurisdictions;
  • geo짯po짯li짯ti짯cal and inter짯na짯tio짯nal trade conditions;
  • our debt obligations;
  • risks of lar짯ge sca짯le glo짯bal operations;
  • macroe짯co짯no짯mic conditions;
  • impacts of the COVID-19 or simi짯lar such pan짯de짯mic; and
  • other risks and uncer짯tain짯ties descri짯bed in this release, our most recent Annu짯al Report on Form 10멚 and our other filings with the U.S. Secu짯ri짯ties and Exch짯an짯ge Com짯mis짯si짯on (SEC).

Given the짯se risks and uncer짯tain짯ties, rea짯ders are cau짯tio짯ned not to place undue reli짯ance on such for짯ward-loo짯king state짯ments. Rea짯ders are urged to careful짯ly review and con짯sider the various dis짯clo짯sures made in this release and in other docu짯ments we file from time to time with the SEC that dis짯c짯lo짯se risks and uncer짯tain짯ties that may affect our business.

Unless spe짯ci짯fi짯cal짯ly indi짯ca짯ted other짯wi짯se, the for짯ward-loo짯king state짯ments in this release do not reflect the poten짯ti짯al impact of any dives짯ti짯tures, mer짯gers, acqui짯si짯ti짯ons, or other busi짯ness com짯bi짯na짯ti짯ons that have not been com짯ple짯ted as of the date of this release. In addi짯ti짯on, the for짯ward-loo짯king state짯ments in this release are based on management셲 expec짯ta짯ti짯ons as of the date of this release, unless an ear짯lier date is spe짯ci짯fied, inclu짯ding expec짯ta짯ti짯ons based on third-par짯ty infor짯ma짯ti짯on and pro짯jec짯tions that manage짯ment belie짯ves to be repu짯ta짯ble. We do not under짯ta짯ke, and express짯ly dis짯claims any duty, to update such state짯ments, whe짯ther as a result of new infor짯ma짯ti짯on, new deve짯lo짯p짯ments, or other짯wi짯se, except to the ext짯ent that dis짯clo짯sure may be requi짯red by law.

 

About Intel

Intel (Nasdaq: INTC) is an indus짯try lea짯der, crea짯ting world-chan짯ging tech짯no짯lo짯gy that enables glo짯bal pro짯gress and enri짯ches lives. Inspi짯red by Moore셲 Law, we con짯ti짯nuous짯ly work to advan짯ce the design and manu짯fac짯tu짯ring of semi짯con짯duc짯tors to help address our cus짯to짯mers grea짯test chal짯lenges. By embed짯ding intel짯li짯gence in the cloud, net짯work, edge and every kind of com짯pu짯ting device, we unleash the poten짯ti짯al of data to trans짯form busi짯ness and socie짯ty for the bet짯ter. To learn more about Intel셲 inno짯va짯tions, go to newsroom.intel.com and intel.com.

짤 Intel Cor짯po짯ra짯ti짯on. Intel, the Intel logo, and other Intel marks are trade짯marks of Intel Cor짯po짯ra짯ti짯on or its sub짯si짯dia짯ries. Other names and brands may be clai짯med as the pro짯per짯ty of others.

 

 

 

 

 

Intel Cor짯po짯ra짯ti짯on

Con짯so짯li짯da짯ted Con짯den짯sed State짯ments of Inco짯me and Other Information

    Three Months Ended
(In Mil짯li짯ons, Except Per Share Amounts; Unaudited)   Apr 1, 2023   Apr 2, 2022
Net reve짯nue   $        11,715   $        18,353
Cost of sales              7,707              9,109
Gross mar짯gin              4,008              9,244
Rese짯arch and development              4,109              4,362
Mar짯ke짯ting, gene짯ral, and administrative              1,303              1,752
Res짯truc짯tu짯ring and other charges                  64             (1,211)
Ope짯ra짯ting expenses              5,476              4,903
Ope짯ra짯ting inco짯me (loss)             (1,468)              4,341
Gains (los짯ses) on equi짯ty invest짯ments, net                 169              4,323
Inte짯rest and other, net                 141                 997
Inco짯me (loss) befo짯re taxes             (1,158)              9,661
Pro짯vi짯si짯on for taxes              1,610              1,548
Net inco짯me (loss)             (2,768)              8,113
Less: Net inco짯me (loss) attri짯bu짯ta짯ble to non-con짯trol짯ling interests                 (10)                  
Net inco짯me (loss) attri짯bu짯ta짯ble to Intel   $        (2,758)   $         8,113
Ear짯nings (loss) per share attri짯bu짯ta짯ble to Intel봟asic   $          (0.66)   $           1.99
Ear짯nings (loss) per share attri짯bu짯ta짯ble to Intel봡iluted   $          (0.66)   $           1.98
         
Weigh짯ted avera짯ge shares of com짯mon stock outstanding:        
Basic   $         4,154   $         4,079
Diluted   $         4,154   $         4,107

 

    Three Months Ended
(In Mil짯li짯ons)   Apr 1, 2023   Apr 2, 2022
Ear짯nings per share of com짯mon stock information:        
Weigh짯ted avera짯ge shares of com짯mon stock outstanding봟asic              4,154              4,079
Dilu짯ti짯ve effect of employee equi짯ty incen짯ti짯ve plans                                    28
Weigh짯ted avera짯ge shares of com짯mon stock outstanding봡iluted              4,154              4,107
         
Other infor짯ma짯ti짯on:        
Employees (in thousands)              125.5              122.9

 

 

Intel Cor짯po짯ra짯ti짯on

Con짯so짯li짯da짯ted Con짯den짯sed Balan짯ce Sheets

(In Mil짯li짯ons, Except Par Value; Unaudited)   Apr 1, 2023   Dec 31, 2022
Assets        
Cur짯rent assets:        
Cash and cash equivalents   $          8,232   $         11,144
Short-term invest짯ments             19,302             17,194
Accounts receiva짯ble, net               3,847               4,133
Invent짯ories        
Raw mate짯ri짯als               1,358               1,517
Work in process               7,415               7,565
Finis짯hed goods               4,220               4,142
              12,993             13,224
Other cur짯rent assets               3,940               4,712
Total cur짯rent assets             48,314             50,407
         
Pro짯per짯ty, plant and equip짯ment, net             85,734             80,860
Equi짯ty investments               6,029               5,912
Good짯will             27,591             27,591
Iden짯ti짯fied intan짯gi짯ble assets, net               5,567               6,018
Other long-term assets             12,068             11,315
Total assets   $       185,303   $       182,103
         
Lia짯bi짯li짯ties and stock짯hol짯ders equity        
Cur짯rent liabilities:        
Short-term debt   $          1,437   $          4,367
Accounts paya짯ble               8,083               9,595
Accrued com짯pen짯sa짯ti짯on and benefits               2,497               4,084
Inco짯me taxes payable               4,046               2,251
Other accrued liabilities             11,330             11,858
Total cur짯rent liabilities             27,393             32,155
         
Debt             48,836             37,684
Long-term inco짯me taxes payable               3,831               3,796
Other long-term liabilities               4,840               5,182
Stock짯hol짯ders equity:        
Com짯mon stock and capi짯tal in excess of par value, 4,171 issued and out짯stan짯ding (4,137 issued and out짯stan짯ding as of Decem짯ber 31, 2022)             32,829             31,580
Accu짯mu짯la짯ted other com짯pre짯hen짯si짯ve inco짯me (loss)                (419)                (562)
Retai짯ned earnings             65,649             70,405
Total Intel stock짯hol짯ders equity             98,059            101,423
Non-con짯trol짯ling interests               2,344               1,863
Total stock짯hol짯ders equity            100,403            103,286
Total lia짯bi짯li짯ties and stock짯hol짯ders equity   $       185,303   $       182,103

 

 

Intel Cor짯po짯ra짯ti짯on

Con짯so짯li짯da짯ted Con짯den짯sed State짯ments of Cash Flows

    Three Months Ended
(In Mil짯li짯ons; Unaudited)   Apr 1, 2023   Apr 2, 2022
         
Cash and cash equi짯va짯lents, begin짯ning of period   $         11,144   $          4,827
Cash flows pro짯vi짯ded by (used for) ope짯ra짯ting activities:        
Net inco짯me (loss)              (2,768)               8,113
Adjus짯t짯ments to recon짯ci짯le net inco짯me to net cash pro짯vi짯ded by ope짯ra짯ting activities:        
Depre짯cia짯ti짯on               1,901               2,847
Share-based com짯pen짯sa짯ti짯on                  739                  707
Res짯truc짯tu짯ring and other charges                   55                   17
Amor짯tiza짯ti짯on of intangibles                  465                  501
(Gains) los짯ses on equi짯ty invest짯ments, net                (167)              (4,325)
(Gains) los짯ses on divestitures                                 (1,121)
Chan짯ges in assets and liabilities:        
Accounts receiva짯ble                  286               2,384
Invent짯ories                  231              (1,147)
Accounts paya짯ble                (771)                (128)
Accrued com짯pen짯sa짯ti짯on and benefits              (1,560)              (1,884)
Inco짯me taxes               1,344               1,219
Other assets and liabilities              (1,540)              (1,292)
Total adjus짯t짯ments                  983              (2,222)
Net cash pro짯vi짯ded by (used for) ope짯ra짯ting activities              (1,785)               5,891
Cash flows pro짯vi짯ded by (used for) inves짯t짯ing activities:        
Addi짯ti짯ons to pro짯per짯ty, plant and equipment              (7,413)              (4,604)
Purcha짯ses of short-term investments            (16,132)            (19,091)
Matu짯ri짯ties and sales of short-term investments             14,173             10,490
Sales of equi짯ty investments                  116               4,682
Pro짯ceeds from divestitures                                  6,544
Other inves짯t짯ing                  735                (660)
Net cash used for inves짯t짯ing activities              (8,521)              (2,639)
Cash flows pro짯vi짯ded by (used for) finan짯cing activities:        
Repay짯ment of com짯mer짯cial paper              (2,930)                   
Pay짯ments on finan짯ce leases                  (15)                (299)
Part짯ner contributions                  449                   
Issu짯an짯ce of long-term debt, net of issu짯an짯ce costs             10,968                   
Pro짯ceeds from sales of com짯mon stock through employee equi짯ty incen짯ti짯ve plans                  659                  589
Pay짯ment of divi짯dends to stockholders              (1,512)              (1,487)
Other finan짯cing                (225)                (667)
Net cash pro짯vi짯ded by (used for) finan짯cing activities               7,394              (1,864)
Net increase (decrease) in cash and cash equivalents              (2,912)               1,388
Cash and cash equi짯va짯lents, end of period   $          8,232   $          6,215

 

 

Intel Cor짯po짯ra짯ti짯on

Sup짯ple짯men짯tal Ope짯ra짯ting Seg짯ment Results

    Three Months Ended
(In Mil짯li짯ons)   Apr 1, 2023   Apr 2, 2022
Net reve짯nue:        
Cli짯ent Computing        
Desk짯top   $         1,879   $         2,641
Note짯book              3,407              5,959
Other                 481                 722
               5,767              9,322
         
Data Cen짯ter and AI              3,718              6,074
Net짯work and Edge              1,489              2,139
Mobi짯leye                 458                 394
Intel Foundry Services                 118                 156
All other                 165                 268
Total net revenue   $        11,715   $        18,353
         
Ope짯ra짯ting inco짯me (loss):        
Cli짯ent Computing   $            520   $         2,722
Data Cen짯ter and AI               (518)              1,393
Net짯work and Edge               (300)                 416
Mobi짯leye                 123                 148
Intel Foundry Services               (140)                 (23)
All other             (1,153)               (315)
Total ope짯ra짯ting inco짯me (loss)   $        (1,468)   $         4,341

 

We deri짯ve a sub짯stan짯ti짯al majo짯ri짯ty of our reve짯nue from our prin짯ci짯pal pro짯ducts that incor짯po짯ra짯te various com짯pon짯ents and tech짯no짯lo짯gies, inclu짯ding a micro짯pro짯ces짯sor and chip짯set, a stand-alo짯ne sys짯tem-on-chip or a mul짯ti짯chip packa짯ge, which are based on Intel architecture.

Reve짯nue for our repor짯ta짯ble and non-repor짯ta짯ble ope짯ra짯ting seg짯ments is pri짯ma짯ri짯ly rela짯ted to the fol짯lo짯wing pro짯duct lines:

뼧       CCG includes pro짯ducts desi짯gned for end-user form fac짯tors, focu짯sing on hig짯her growth seg짯ments of 2 in 1, thin-and-light, com짯mer짯cial and gam짯ing, and gro짯wing other pro짯ducts such as con짯nec짯ti짯vi짯ty and graphics.

뼧       DCAI includes a broad port짯fo짯lio of cen짯tral pro짯ces짯sing units (CPUs), domain-spe짯ci짯fic acce짯le짯ra짯tors and field pro짯gramma짯ble gate arrays (FPGAs), desi짯gned to empower data cen짯ter and hypers짯ca짯le solu짯ti짯ons for diver짯se com짯pu짯ting needs.

뼧       NEX includes pro짯gramma짯ble plat짯forms and high-per짯for짯mance con짯nec짯ti짯vi짯ty and com짯pu짯te solu짯ti짯ons desi짯gned for mar짯ket seg짯ments such as cloud net짯wor짯king, tele짯com짯mu짯ni짯ca짯ti짯ons net짯works, on-pre짯mi짯ses edge, soft짯ware and platforms.

뼧       Mobi짯leye includes the deve짯lo짯p짯ment and deploy짯ment of advan짯ced dri짯ver-assis짯tance sys짯tems (ADAS) and auto짯no짯mous dri짯ving tech짯no짯lo짯gies and solutions.

뼧       IFS pro짯vi짯des dif짯fe짯ren짯tia짯ted full stack solu짯ti짯ons inclu짯ding wafer fabri짯ca짯ti짯on, pack짯a짯ging, chip짯let stan짯dard and software.

We have sales and mar짯ke짯ting, manu짯fac짯tu짯ring, engi짯nee짯ring, finan짯ce and admi짯nis짯tra짯ti짯on groups. Expen짯ses for the짯se groups are gene짯ral짯ly allo짯ca짯ted to the ope짯ra짯ting segments.

We have an 쏿ll other cate짯go짯ry that includes reve짯nue, expen짯ses and char짯ges such as:

뼧       results of ope짯ra짯ti짯ons from non-repor짯ta짯ble seg짯ments not other짯wi짯se pre짯sen짯ted, and from start-up busi짯nesses that sup짯port our initiatives;

뼧       his짯to짯ri짯cal results of ope짯ra짯ti짯ons from dive짯s짯ted businesses;

뼧       amounts included within res짯truc짯tu짯ring and other charges;

뼧       employee bene짯fits, com짯pen짯sa짯ti짯on, impair짯ment char짯ges, and other expen짯ses not allo짯ca짯ted to the ope짯ra짯ting seg짯ments; and

뼧       acqui짯si짯ti짯on-rela짯ted cos짯ts, inclu짯ding amor짯tiza짯ti짯on and any impair짯ment of acqui짯si짯ti짯on-rela짯ted intan짯gi짯bles and goodwill.

 

Intel Cor짯po짯ra짯ti짯on

Expl짯ana짯ti짯on of Non-GAAP Measures

In addi짯ti짯on to dis짯clo짯sing finan짯cial results in accordance with US GAAP, this docu짯ment con짯ta짯ins refe짯ren짯ces to the non-GAAP finan짯cial mea짯su짯res below. We belie짯ve the짯se non-GAAP finan짯cial mea짯su짯res pro짯vi짯de inves짯tors with useful sup짯ple짯men짯tal infor짯ma짯ti짯on about our ope짯ra짯ting per짯for짯mance, enable com짯pa짯ri짯son of finan짯cial trends and results bet짯ween peri짯ods whe짯re cer짯tain items may vary inde짯pen짯dent of busi짯ness per짯for짯mance, and allow for grea짯ter trans짯pa짯ren짯cy with respect to key metrics used by manage짯ment in ope짯ra짯ting our busi짯ness and mea짯su짯ring our per짯for짯mance. The짯se non-GAAP finan짯cial mea짯su짯res are used in our per짯for짯mance-based RSUs and our cash bonus plans.

Our non-GAAP finan짯cial mea짯su짯res reflect adjus짯t짯ments based on one or more of the fol짯lo짯wing items, as well as the rela짯ted inco짯me tax effects. Begin짯ning in 2023, inco짯me tax effects are cal짯cu짯la짯ted using a fixed long-term pro짯jec짯ted tax rate across all adjus짯t짯ments. We pro짯ject this long-term non-GAAP tax rate on an annu짯al basis using a five-year non-GAAP finan짯cial pro짯jec짯tion that excludes the inco짯me tax effects of each adjus짯t짯ment. The pro짯jec짯ted non-GAAP tax rate also con짯siders fac짯tors such as our tax struc짯tu짯re, our tax posi짯ti짯ons in various juris짯dic짯tions, and key legis짯la짯ti짯on in signi짯fi짯cant juris짯dic짯tions whe짯re we ope짯ra짯te. This long-term non-GAAP tax rate may be sub짯ject to chan짯ge for a varie짯ty of reasons, inclu짯ding the rapidly evol짯ving glo짯bal tax envi짯ron짯ment, signi짯fi짯cant chan짯ges in our geo짯gra짯phic ear짯nings mix, or chan짯ges to our stra짯tegy or busi짯ness ope짯ra짯ti짯ons. Manage짯ment uses this non-GAAP tax rate in mana짯ging inter짯nal short- and long-term ope짯ra짯ting plans and in eva짯lua짯ting our per짯for짯mance; we belie짯ve this approach faci짯li짯ta짯tes com짯pa짯ri짯son of our ope짯ra짯ting results and pro짯vi짯des useful eva짯lua짯ti짯on of our cur짯rent ope짯ra짯ting per짯for짯mance. Pri짯or-peri짯od non-GAAP results have been retroac짯tively adjus짯ted to reflect this updated approach.

 

The짯se non-GAAP finan짯cial mea짯su짯res should not be con짯side짯red a sub짯sti짯tu짯te for, or supe짯ri짯or to, finan짯cial mea짯su짯res cal짯cu짯la짯ted in accordance with US GAAP, and the finan짯cial results cal짯cu짯la짯ted in accordance with US GAAP and recon짯ci짯lia짯ti짯ons from the짯se results should be careful짯ly evaluated.

 

Non-GAAP adjus짯t짯ment or measure Defi짯ni짯ti짯on Useful짯ness to manage짯ment and investors
Acqui짯si짯ti짯on-rela짯ted adjustments Amor짯tiza짯ti짯on of acqui짯si짯ti짯on-rela짯ted intan짯gi짯ble assets con짯sists of amor짯tiza짯ti짯on of intan짯gi짯ble assets such as deve짯lo짯ped tech짯no짯lo짯gy, brands, and cus짯to짯mer rela짯ti짯onships acqui짯red in con짯nec짯tion with busi짯ness com짯bi짯na짯ti짯ons. Char짯ges rela짯ted to the amor짯tiza짯ti짯on of the짯se intan짯gi짯bles are recor짯ded within both cost of sales and MG&A in our US GAAP finan짯cial state짯ments. Amor짯tiza짯ti짯on char짯ges are recor짯ded over the esti짯ma짯ted useful life of the rela짯ted acqui짯red intan짯gi짯ble asset, and thus are gene짯ral짯ly recor짯ded over mul짯ti짯ple years. We exclude amor짯tiza짯ti짯on char짯ges for our acqui짯si짯ti짯on-rela짯ted intan짯gi짯ble assets for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res becau짯se the짯se char짯ges are incon짯sis짯tent in size and are signi짯fi짯cant짯ly impac짯ted by the timing and valua짯ti짯on of our acqui짯si짯ti짯ons. The짯se adjus짯t짯ments faci짯li짯ta짯te a useful eva짯lua짯ti짯on of our cur짯rent ope짯ra짯ting per짯for짯mance and com짯pa짯ri짯son to our past ope짯ra짯ting per짯for짯mance and pro짯vi짯de inves짯tors with addi짯tio짯nal means to eva짯lua짯te cost and expen짯se trends.
Share-based com짯pen짯sa짯ti짯on Share-based com짯pen짯sa짯ti짯on con짯sists of char짯ges rela짯ted to our employee equi짯ty incen짯ti짯ve plans. We exclude char짯ges rela짯ted to share-based com짯pen짯sa짯ti짯on for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res becau짯se we belie짯ve the짯se adjus짯t짯ments pro짯vi짯de bet짯ter com짯pa짯ra짯bi짯li짯ty to peer com짯pa짯ny results and becau짯se the짯se char짯ges are not view짯ed by manage짯ment as part of our core ope짯ra짯ting per짯for짯mance. We belie짯ve the짯se adjus짯t짯ments pro짯vi짯de inves짯tors with a useful view, through the eyes of manage짯ment, of our core busi짯ness model, how manage짯ment curr짯ent짯ly eva짯lua짯tes core ope짯ra짯tio짯nal per짯for짯mance, and addi짯tio짯nal means to eva짯lua짯te expen짯se trends, inclu짯ding in com짯pa짯ri짯son to other peer companies.
Res짯truc짯tu짯ring and other charges Res짯truc짯tu짯ring char짯ges are cos짯ts asso짯cia짯ted with a for짯mal res짯truc짯tu짯ring plan and are pri짯ma짯ri짯ly rela짯ted to employee sever짯ance and bene짯fit arran짯ge짯ments. Other char짯ges may include peri짯odic good짯will and asset impairm짯ents, cer짯tain pen짯si짯on char짯ges, and cos짯ts asso짯cia짯ted with res짯truc짯tu짯ring acti짯vi짯ty, and in Q1 2022 includes a bene짯fit rela짯ted to the annul짯led EC fine. We exclude res짯truc짯tu짯ring and other char짯ges, inclu짯ding any adjus짯t짯ments to char짯ges recor짯ded in pri짯or peri짯ods, for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res becau짯se the짯se cos짯ts do not reflect our core ope짯ra짯ting per짯for짯mance. The짯se adjus짯t짯ments faci짯li짯ta짯te a useful eva짯lua짯ti짯on of our core ope짯ra짯ting per짯for짯mance and com짯pa짯ri짯sons to past ope짯ra짯ting results and pro짯vi짯de inves짯tors with addi짯tio짯nal means to eva짯lua짯te expen짯se trends.
Gains (los짯ses) from divestiture Gains (los짯ses) are reco짯gni짯zed at the clo짯se of a dives짯ti짯tu짯re, or over a spe짯ci짯fied defer짯ral peri짯od when defer짯red con짯side짯ra짯ti짯on is recei짯ved at the time of clo짯sing. Based on our ongo짯ing obli짯ga짯ti짯on under the NAND wafer manu짯fac짯tu짯ring and sale agree짯ment ente짯red into in con짯nec짯tion with the first clo짯sing of the sale of our NAND memo짯ry busi짯ness on Decem짯ber 29, 2021, a por짯ti짯on of the initi짯al clo짯sing con짯side짯ra짯ti짯on was defer짯red and will be reco짯gni짯zed bet짯ween first and second closing. We exclude gains or los짯ses resul짯ting from dives짯ti짯tures for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res becau짯se they do not reflect our cur짯rent ope짯ra짯ting per짯for짯mance. The짯se adjus짯t짯ments faci짯li짯ta짯te a useful eva짯lua짯ti짯on of our cur짯rent ope짯ra짯ting per짯for짯mance and com짯pa짯ri짯sons to past ope짯ra짯ting results.
(Gains) los짯ses on equi짯ty invest짯ments, net (Gains) los짯ses on equi짯ty invest짯ments, net con짯sists of ongo짯ing mark-to-mar짯ket adjus짯t짯ments on mar짯ke짯ta짯ble equi짯ty secu짯ri짯ties, obser짯va짯ble pri짯ce adjus짯t짯ments on non-mar짯ke짯ta짯ble equi짯ty secu짯ri짯ties, rela짯ted impair짯ment char짯ges, and the sale of equi짯ty invest짯ments and other. We exclude the짯se non-ope짯ra짯ting gains and los짯ses for pur짯po짯ses of cal짯cu짯la짯ting cer짯tain non-GAAP mea짯su짯res becau짯se it pro짯vi짯des bet짯ter com짯pa짯ra짯bi짯li짯ty bet짯ween peri짯ods. The exclu짯si짯on reflects how manage짯ment eva짯lua짯tes the core ope짯ra짯ti짯ons of the business.
Adjus짯ted free cash flow We refe짯rence a non-GAAP finan짯cial mea짯su짯re of adjus짯ted free cash flow, which is used by manage짯ment when asses짯sing our sources of liqui짯di짯ty, capi짯tal resour짯ces, and qua짯li짯ty of ear짯nings. Adjus짯ted free cash flow is ope짯ra짯ting cash flow adjus짯ted for 1) addi짯ti짯ons to pro짯per짯ty, plant and equip짯ment, net of pro짯ceeds from capi짯tal grants and part짯ner con짯tri짯bu짯ti짯ons, 2) pay짯ments on finan짯ce lea짯ses, and 3) pro짯ceeds from the McA짯fee equi짯ty sale. This non-GAAP finan짯cial mea짯su짯re is hel짯pful in under짯stan짯ding our capi짯tal requi짯re짯ments and sources of liqui짯di짯ty by pro짯vi짯ding an addi짯tio짯nal means to eva짯lua짯te the cash flow trends of our busi짯ness. Sin짯ce the 2017 dives짯ti짯tu짯re, McA짯fee equi짯ty dis짯tri짯bu짯ti짯ons and sales con짯tri짯bu짯ted to pri짯or ope짯ra짯ting and free cash flow, and while the McA짯fee equi짯ty sale in Q1 2022 would have typi짯cal짯ly been excluded from adjus짯ted free cash flow as an equi짯ty sale, we belie짯ve inclu짯ding the sale pro짯ceeds in adjus짯ted free cash flow faci짯li짯ta짯te a bet짯ter, more con짯sis짯tent com짯pa짯ri짯son to past pre짯sen짯ta짯ti짯ons of liquidity.

 

Intel Cor짯po짯ra짯ti짯on

Sup짯ple짯men짯tal Recon짯ci짯lia짯ti짯ons of GAAP Actu짯als to Non-GAAP Actuals

Set forth below are recon짯ci짯lia짯ti짯ons of the non-GAAP finan짯cial mea짯su짯re to the most direct짯ly com짯pa짯ra짯ble US GAAP finan짯cial mea짯su짯re. The짯se non-GAAP finan짯cial mea짯su짯res should not be con짯side짯red a sub짯sti짯tu짯te for, or supe짯ri짯or to, finan짯cial mea짯su짯res cal짯cu짯la짯ted in accordance with US GAAP, and the recon짯ci짯lia짯ti짯ons from US GAAP to Non-GAAP actu짯als should be careful짯ly eva짯lua짯ted. Plea짯se refer to 쏣xpl짯ana짯ti짯on of Non-GAAP Mea짯su짯res in this docu짯ment for a detail짯ed expl짯ana짯ti짯on of the adjus짯t짯ments made to the com짯pa짯ra짯ble US GAAP mea짯su짯res, the ways manage짯ment uses the non-GAAP mea짯su짯res, and the reasons why manage짯ment belie짯ves the non-GAAP mea짯su짯res pro짯vi짯de useful infor짯ma짯ti짯on for investors.

    Three Months Ended
(In Mil짯li짯ons, Except Per Share Amounts)   Apr 1, 2023   Apr 2, 2022
GAAP gross margin   $       4,008     $       9,244  
Acqui짯si짯ti짯on-rela짯ted adjustments              328               353 
Share-based com짯pen짯sa짯ti짯on              158               148 
Non-GAAP gross margin   $       4,494     $       9,745  
GAAP gross mar짯gin percentage   34.2 %   50.4 %
Acqui짯si짯ti짯on-rela짯ted adjustments   2.8 %   1.9 %
Share-based com짯pen짯sa짯ti짯on   1.4 %   0.8 %
Non-GAAP gross mar짯gin percentage   38.4 %   53.1 %
GAAP R&D and MG&A   $       5,412     $       6,114   
Acqui짯si짯ti짯on-rela짯ted adjustments              (43)               (51) 
Share-based com짯pen짯sa짯ti짯on             (581)              (559) 
Non-GAAP R&D and MG&A   $       4,788     $       5,504  
GAAP ope짯ra짯ting inco짯me (loss)   $     (1,468)    $       4,341  
Acqui짯si짯ti짯on-rela짯ted adjustments              371               404 
Share-based com짯pen짯sa짯ti짯on              739               707 
Res짯truc짯tu짯ring and other charges                64           (1,211)  
Non-GAAP ope짯ra짯ting inco짯me (loss)   $        (294)    $       4,241  
GAAP ope짯ra짯ting mar짯gin (loss)   (12.5) %   23.7 %
Acqui짯si짯ti짯on-rela짯ted adjustments   3.2 %   2.2 %
Share-based com짯pen짯sa짯ti짯on   6.3 %   3.9 %
Res짯truc짯tu짯ring and other charges   0.5 %   (6.6) %
Non-GAAP ope짯ra짯ting mar짯gin (loss)   (2.5) %   23.1 %
GAAP tax rate   (139.0) %   16.0 %
Inco짯me tax effects   152.0 %   (3.0) %
Non-GAAP tax rate   13.0 %   13.0 %
GAAP net inco짯me (loss) attri짯bu짯ta짯ble to Intel   $     (2,758)    $       8,113   
Acqui짯si짯ti짯on-rela짯ted adjustments              371               404 
Share-based com짯pen짯sa짯ti짯on              739               707 
Res짯truc짯tu짯ring and other charges                64           (1,211)  
(Gains) los짯ses on equi짯ty invest짯ments, net             (169)           (4,323) 
(Gains) los짯ses from divestiture              (39)           (1,121) 
Total adjus짯t짯ments attri짯bu짯ta짯ble to non-con짯trol짯ling interest              (12)                   
Inco짯me tax effects           1,635             1,013  
Non-GAAP net inco짯me (loss) attri짯bu짯ta짯ble to Intel   $        (169)    $       3,582  
 
GAAP ear짯nings (loss) per share attri짯bu짯ta짯ble to Intel봡iluted   $       (0.66)    $        1.98  
Acqui짯si짯ti짯on-rela짯ted adjustments             0.09               0.10  
Share-based com짯pen짯sa짯ti짯on             0.18               0.17  
Res짯truc짯tu짯ring and other charges             0.01              (0.30) 
(Gains) los짯ses on equi짯ty invest짯ments, net            (0.04)             (1.05) 
(Gains) los짯ses from divestiture            (0.01)             (0.27) 
Total adjus짯t짯ments attri짯bu짯ta짯ble to non-con짯trol짯ling interest                                    
Inco짯me tax effects             0.39               0.24  
Non-GAAP ear짯nings (loss) per share attri짯bu짯ta짯ble to Intel봡iluted   $       (0.04)    $        0.87  

 

    Three Months Ended
(In Mil짯li짯ons)   Apr 1, 2023   Apr 2, 2022
GAAP net cash pro짯vi짯ded by (used for) ope짯ra짯ting activities   $                           (1,785)   $                             5,891
Net addi짯ti짯ons to pro짯per짯ty, plant and equipment                                (6,964)                                (4,603)
Pay짯ments on finan짯ce leases                                    (15)                                  (299)
Sale of equi짯ty investment                                                                      4,561
Adjus짯ted free cash flow   $                           (8,764)   $                             5,550
GAAP net cash used for inves짯t짯ing activities   $                           (8,521)   $                           (2,639)
GAAP net cash pro짯vi짯ded by (used for) finan짯cing activities   $                             7,394   $                           (1,864)

 

 

Intel Cor짯po짯ra짯ti짯on

Sup짯ple짯men짯tal Recon짯ci짯lia짯ti짯ons of GAAP Out짯look to Non-GAAP Outlook

Set forth below are recon짯ci짯lia짯ti짯ons of the non-GAAP finan짯cial mea짯su짯re to the most direct짯ly com짯pa짯ra짯ble US GAAP finan짯cial mea짯su짯re. The짯se non-GAAP finan짯cial mea짯su짯res should not be con짯side짯red a sub짯sti짯tu짯te for, or supe짯ri짯or to, finan짯cial mea짯su짯res cal짯cu짯la짯ted in accordance with US GAAP, and the finan짯cial out짯look pre짯pared in accordance with US GAAP and the recon짯ci짯lia짯ti짯ons from this Busi짯ness Out짯look should be careful짯ly evaluated.

Plea짯se refer to 쏣xpl짯ana짯ti짯on of Non-GAAP Mea짯su짯res in this docu짯ment for a detail짯ed expl짯ana짯ti짯on of the adjus짯t짯ments made to the com짯pa짯ra짯ble US GAAP mea짯su짯res, the ways manage짯ment uses the non-GAAP mea짯su짯res, and the reasons why manage짯ment belie짯ves the non-GAAP mea짯su짯res pro짯vi짯de useful infor짯ma짯ti짯on for investors.

    Q2 2023 Out짯look1  
    Appro짯xi짯m짯ate짯ly  
GAAP gross mar짯gin percentage   33.2 %  
Acqui짯si짯ti짯on-rela짯ted adjustments   2.6 %  
Share-based com짯pen짯sa짯ti짯on   1.7 %  
Non-GAAP gross mar짯gin percentage   37.5 %  
       
GAAP tax rate   (85) %  
Inco짯me tax effects   98 %  
Non-GAAP tax rate   13 %  
       
GAAP ear짯nings (loss) per share attri짯bu짯ta짯ble to Intel봡iluted   $                  (0.62)   
Acqui짯si짯ti짯on-rela짯ted adjustments                        0.08    
Share-based com짯pen짯sa짯ti짯on                        0.23    
(Gains) los짯ses on equi짯ty invest짯ments, net                       (0.01)   
(Gains) los짯ses from divestiture                       (0.01)   
Total adjus짯t짯ments attri짯bu짯ta짯ble to non-con짯trol짯ling interest                               
Inco짯me tax effects                        0.29    
Non-GAAP ear짯nings (loss) per share attri짯bu짯ta짯ble to Intel봡iluted   $                  (0.04)