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Intel Reports First-Quarter 2024 Financial Results

NEWS SUMMARY

SANTA CLARA, Calif. — (BUSINESS WIRE) — April 25, 2024 — Intel Corporation today reported first-quarter 2024 financial results.

“We are making steady progress against our priorities and delivered a solid quarter,” said Pat Gelsinger, Intel CEO. “Strong innovation across our client, edge and data center portfolios drove double-digit revenue growth in Intel Products. With Intel 3 in high-volume production, leading-edge semiconductors are being manufactured in the U.S. for the first time in almost a decade and we are on track to regain process leadership next year as we grow Intel Foundry. We are confident in our plans to drive sequential growth throughout the year as we accelerate our AI solutions and maintain our relentless focus on execution, operational discipline and shareholder value creation in a dynamic market.”

“Q1 revenue was in line with our expectations and we delivered non-GAAP EPS above our guidance, driven by better-than-expected gross margins and strong expense discipline,” said David Zinsner, Intel CFO. "Our new foundry operating model, which provides greater transparency and accountability, is already driving better decision-making across the business. Looking ahead, we expect to deliver year-over-year revenue and non-GAAP EPS growth in fiscal year 2024, including roughly 200 basis points of full-year gross margin improvement.”

Q1 2024 Financial Highlights

 

GAAP

 

Non-GAAP

 

Q1 2024

Q1 2023

vs. Q1 2023

 

Q1 2024

Q1 2023

vs. Q1 2023

Revenue ($B)

$

12.7

 

$

11.7

 

up 9%

 

 

 

 

Gross Margin

 

41.0

%

 

34.2

%

up 6.8 ppts

 

 

45.1

%

 

38.4

%

up 6.7 ppts

R&D and MG&A ($B)

$

5.9

 

$

5.4

 

up 10%

 

$

5.0

 

$

4.8

 

up 5%

Operating Margin

 

(8.4

)%

 

(12.5

)%

up 4.1 ppts

 

 

5.7

%

 

(2.5

)%

up 8.2 ppts

Tax Rate

 

39.2

%

 

(139.0

)%

n/m*

 

 

13.0

%

 

13.0

%

Net Income (loss) Attributable to Intel ($B)

$

(0.4

)

$

(2.8

)

up 86%

 

$

0.8

 

$

(0.2

)

n/m*

Earnings (loss) Per Share Attributable to Intel

$

(0.09

)

$

(0.66

)

up 86%

 

$

0.18

 

$

(0.04

)

n/m*

In the first quarter, the company used $1.2 billion in cash from operations and paid dividends of $0.5 billion.

*Not meaningful

Business Unit Summary

Intel previously announced the implementation of 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 a key component of the company's strategy and is designed to reshape operational dynamics and drive greater transparency, accountability, and focus on costs and efficiency. The company also previously announced its intent to operate Altera®, an Intel Company (previously Intel's Programmable Solutions Group), as a standalone business beginning in the first quarter of 2024. Altera was previously included in DCAI's segment results. 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

 

Q1 2024

 

vs. Q1 2023

Intel Products:

 

 

 

 

 

Client Computing Group (CCG)

 

$7.5 billion

 

up

31%

Data Center and AI (DCAI)

 

$3.0 billion

 

up

5%

Network and Edge (NEX)

 

$1.4 billion

 

down

8%

Total Intel Products revenue

 

$11.9 billion

 

up

17%

Intel Foundry

 

$4.4 billion

 

down

10%

All other:

 

 

 

 

 

Altera

 

$342 million

 

down

58%

Mobileye

 

$239 million

 

down

48%

Other

 

$194 million

 

up

17%

Total all other revenue

 

$775 million

 

down

46%

Intersegment eliminations

 

$(4.4) billion

 

 

 

Total net revenue

 

$12.7 billion

 

up

9%

Intel Products Highlights

1 NV H100 comparison based on NVIDIA-published data as of March 28, 2024. Reported numbers are per GPU. Vs Intel® Gaudi® 3 projections for LLAMA2-7B, LLAMA2-70B & Falcon 180B. Power efficiency for both Nvidia and Gaudi 3 based on internal estimates. Results may vary.

Intel Foundry Highlights

Also during the quarter, Intel convened more than 140 organizations across the industry at its inaugural Sustainability Summit. Advancing sustainability efforts across the semiconductor ecosystem is a critical step as Intel works to become the industry’s most sustainable foundry. The company shared notable progress as of the end of 2023, including preliminary estimates showing that Intel used 99% renewable electricity in its factories worldwide and achieved net positive water in the United States, Costa Rica, Mexico and India.

Q2 2024 Dividend

The company announced that its board of directors has declared a quarterly dividend of $0.125 per share on the company’s common stock, which will be payable June 1, 2024, to shareholders of record as of May 7, 2024.

Business Outlook

Intel's guidance for the second quarter of 2024 includes both GAAP and non-GAAP estimates. Reconciliations between GAAP and non-GAAP financial measures are included below.

Q2 2024

 

GAAP

 

Non-GAAP

Revenue

 

$12.5-13.5 billion

 

 

Gross Margin

 

40.2%

 

43.5%

Tax Rate

 

61%

 

13%

Earnings (Loss) Per Share Attributable to Intel—Diluted

 

$(0.05)

 

$0.10

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 outlook are based on the mid-point of the revenue range.

Earnings Webcast

Intel will hold a public webcast at 2 p.m. PDT today to discuss the results for its first 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 Condensed Statements of Income and Other Information

 

 

Three Months Ended

(In Millions, Except Per Share Amounts; Unaudited)

 

Mar 30, 2024

 

Apr 1, 2023

Net revenue

 

$ 12,724

 

$ 11,715

Cost of sales

 

7,507

 

7,707

Gross margin

 

5,217

 

4,008

Research and development

 

4,382

 

4,109

Marketing, general, and administrative

 

1,556

 

1,303

Restructuring and other charges

 

348

 

64

Operating expenses

 

6,286

 

5,476

Operating income (loss)

 

(1,069)

 

(1,468)

Gains (losses) on equity investments, net

 

205

 

169

Interest and other, net

 

145

 

141

Income (loss) before taxes

 

(719)

 

(1,158)

Provision for (benefit from) taxes

 

(282)

 

1,610

Net income (loss)

 

(437)

 

(2,768)

Less: Net income (loss) attributable to non-controlling interests

 

(56)

 

(10)

Net income (loss) attributable to Intel

 

$ (381)

 

$ (2,758)

Earnings (loss) per share attributable to Intel—basic

 

$ (0.09)

 

$ (0.66)

Earnings (loss) per share attributable to Intel—diluted

 

$ (0.09)

 

$ (0.66)

 

 

 

 

 

Weighted average shares of common stock outstanding:

 

 

 

 

Basic

 

4,242

 

4,154

Diluted

 

4,242

 

4,154

 

 

 

 

 

 

 

Three Months Ended

(In Millions; Unaudited)

 

Mar 30, 2024

 

Apr 1, 2023

Earnings per share of common stock information:

 

 

 

 

Weighted average shares of common stock outstanding—basic

 

4,242

 

4,154

Weighted average shares of common stock outstanding—diluted

 

4,242

 

4,154

 

 

 

 

 

Other information:

 

 

 

 

Employees (in thousands)

 

130.7

 

130.1

Intel Corporation

Consolidated Condensed Balance Sheets

(In Millions; Unaudited)

 

Mar 30, 2024

 

Dec 30, 2023

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$ 6,923

 

$ 7,079

Short-term investments

 

14,388

 

17,955

Accounts receivable, net

 

3,323

 

3,402

Inventories

 

 

 

 

Raw materials

 

1,209

 

1,166

Work in process

 

6,560

 

6,203

Finished goods

 

3,725

 

3,758

 

 

11,494

 

11,127

Other current assets

 

6,480

 

3,706

Total current assets

 

42,608

 

43,269

 

 

 

 

 

Property, plant, and equipment, net

 

99,924

 

96,647

Equity investments

 

6,139

 

5,829

Goodwill

 

27,440

 

27,591

Identified intangible assets, net

 

4,675

 

4,589

Other long-term assets

 

11,947

 

13,647

Total assets

 

$ 192,733

 

$ 191,572

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

Current liabilities:

 

 

 

 

Short-term debt

 

$ 4,581

 

$ 2,288

Accounts payable

 

8,559

 

8,578

Accrued compensation and benefits

 

2,506

 

3,655

Income taxes payable

 

346

 

1,107

Other accrued liabilities

 

11,221

 

12,425

Total current liabilities

 

27,213

 

28,053

 

 

 

 

 

Debt

 

47,869

 

46,978

Other long-term liabilities

 

6,895

 

6,576

Stockholders’ equity:

 

 

 

 

Common stock and capital in excess of par value, 4,257 issued and outstanding (4,228 issued and outstanding as of December 30, 2023)

 

38,291

 

36,649

Accumulated other comprehensive income (loss)

 

(542)

 

(215)

Retained earnings

 

68,224

 

69,156

Total Intel stockholders' equity

 

105,973

 

105,590

Non-controlling interests

 

4,783

 

4,375

Total stockholders' equity

 

110,756

 

109,965

Total liabilities and stockholders’ equity

 

$ 192,733

 

$ 191,572

Intel Corporation

Consolidated Condensed Statements of Cash Flows

 

 

Three Months Ended

(In Millions; Unaudited)

 

Mar 30, 2024

 

Apr 1, 2023

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

$

7,079

 

 

$

11,144

 

Cash flows provided by (used for) operating activities:

 

 

 

 

Net income (loss)

 

 

(437

)

 

 

(2,768

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

Depreciation

 

 

2,200

 

 

 

1,901

 

Share-based compensation

 

 

1,179

 

 

 

739

 

Restructuring and other charges

 

 

348

 

 

 

55

 

Amortization of intangibles

 

 

351

 

 

 

465

 

(Gains) losses on equity investments, net

 

 

(208

)

 

 

(167

)

Changes in assets and liabilities:

 

 

 

 

Accounts receivable

 

 

80

 

 

 

286

 

Inventories

 

 

(366

)

 

 

231

 

Accounts payable

 

 

(386

)

 

 

(771

)

Accrued compensation and benefits

 

 

(1,289

)

 

 

(1,560

)

Income taxes

 

 

(591

)

 

 

1,344

 

Other assets and liabilities

 

 

(2,104

)

 

 

(1,540

)

Total adjustments

 

 

(786

)

 

 

983

 

Net cash provided by (used for) operating activities

 

 

(1,223

)

 

 

(1,785

)

Cash flows provided by (used for) investing activities:

 

 

 

 

Additions to property, plant, and equipment

 

 

(5,970

)

 

 

(7,413

)

Proceeds from capital-related government incentives

 

 

592

 

 

 

 

Purchases of short-term investments

 

 

(6,460

)

 

 

(16,132

)

Maturities and sales of short-term investments

 

 

9,598

 

 

 

14,173

 

Other investing

 

 

(323

)

 

 

851

 

Net cash provided by (used for) investing activities

 

 

(2,563

)

 

 

(8,521

)

Cash flows provided by (used for) financing activities:

 

 

 

 

Issuance of commercial paper, net of issuance costs

 

 

793

 

 

 

 

Repayment of commercial paper

 

 

 

 

 

(2,930

)

Payments on finance leases

 

 

 

 

 

(15

)

Partner contributions

 

 

423

 

 

 

449

 

Issuance of long-term debt, net of issuance costs

 

 

2,537

 

 

 

10,968

 

Proceeds from sales of common stock through employee equity incentive plans

 

 

626

 

 

 

659

 

Payment of dividends to stockholders

 

 

(529

)

 

 

(1,512

)

Other financing

 

 

(220

)

 

 

(225

)

Net cash provided by (used for) financing activities

 

 

3,630

 

 

 

7,394

 

Net increase (decrease) in cash and cash equivalents

 

 

(156

)

 

 

(2,912

)

Cash and cash equivalents, end of period

 

$

6,923

 

 

$

8,232

 

Intel Corporation

Supplemental Operating Segment Results

 

 

Three Months Ended

(In Millions)

 

Mar 30, 2024

 

Apr 1, 2023

Operating segment revenue:

 

 

 

 

Intel Products:

 

 

 

 

Client Computing Group

 

 

 

 

Desktop

 

$

2,461

 

 

$

1,879

 

Notebook

 

 

4,681

 

 

 

3,407

 

Other

 

 

391

 

 

 

481

 

 

 

 

7,533

 

 

 

5,767

 

Data Center and AI

 

 

3,036

 

 

 

2,901

 

Network and Edge

 

 

1,364

 

 

 

1,489

 

Total Intel Products revenue

 

$

11,933

 

 

$

10,157

 

 

 

 

 

 

Intel Foundry

 

$

4,369

 

 

$

4,831

 

All other

 

 

 

 

Altera

 

 

342

 

 

 

816

 

Mobileye

 

 

239

 

 

 

458

 

Other

 

 

194

 

 

 

166

 

Total all other revenue

 

 

775

 

 

 

1,440

 

Total operating segment revenue

 

$

17,077

 

 

$

16,428

 

Intersegment eliminations

 

 

(4,353

)

 

 

(4,713

)

Total net revenue

 

$

12,724

 

 

$

11,715

 

 

 

 

 

 

Segment operating income (loss):

 

 

 

 

Intel Products:

 

 

 

 

Client Computing Group

 

$

2,645

 

 

$

1,180

 

Data Center and AI

 

 

482

 

 

 

22

 

Network and Edge

 

 

184

 

 

 

(69

)

Total Intel Products operating income (loss)

 

$

3,311

 

 

$

1,133

 

 

 

 

 

 

Intel Foundry

 

$

(2,474

)

 

$

(2,360

)

All Other

 

 

 

 

Altera

 

 

(39

)

 

 

290

 

Mobileye

 

 

(68

)

 

 

123

 

Other

 

 

(105

)

 

 

(66

)

Total all other operating income (loss)

 

 

(212

)

 

 

347

 

Total segment operating income (loss)

 

$

625

 

 

$

(880

)

Intersegment eliminations

 

 

494

 

 

 

456

 

Corporate unallocated expenses

 

 

(2,188

)

 

 

(1,044

)

Total operating income (loss)

 

$

(1,069

)

 

$

(1,468

)

For information about our operating segments, including the nature of segment revenues and expenses, and a reconciliation of our operating segment revenue and operating income (loss) to our consolidated results, refer to our Forms 10-K and 10-Q.

Intel Corporation
Explanation of Non-GAAP Measures

In addition to disclosing financial results in accordance with US 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. 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 income tax effects. Income tax effects are calculated using a fixed long-term projected tax rate of 13% across all adjustments. We project this long-term non-GAAP tax rate on 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.

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 adjustment or measure

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. Other charges include periodic goodwill and asset impairments, certain 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 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 sale of equity investments and other.

We exclude these non-operating gains and losses for purposes of calculating certain non-GAAP measures because it provides 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 on December 29, 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.

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 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.

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

 

(In Millions, Except Per Share Amounts)

 

Mar 30, 2024

 

Apr 1, 2023

 

GAAP gross margin

 

$

5,217

 

 

$

4,008

 

 

Acquisition-related adjustments

 

 

224

 

 

 

328

 

 

Share-based compensation

 

 

298

 

 

 

158

 

 

Non-GAAP gross margin

 

$

5,739

 

 

$

4,494

 

 

GAAP gross margin percentage

 

 

41.0

%

 

 

34.2

%

 

Acquisition-related adjustments

 

 

1.8

%

 

 

2.8

%

 

Share-based compensation

 

 

2.3

%

 

 

1.4

%

 

Non-GAAP gross margin percentage

 

 

45.1

%

 

 

38.4

%

 

GAAP R&D and MG&A

 

$

5,938

 

 

$

5,412

 

 

Acquisition-related adjustments

 

 

(41

)

 

 

(43

)

 

Share-based compensation

 

 

(881

)

 

 

(581

)

 

Non-GAAP R&D and MG&A

 

$

5,016

 

 

$

4,788

 

 

GAAP operating income (loss)

 

$

(1,069

)

 

$

(1,468

)

 

Acquisition-related adjustments

 

 

265

 

 

 

371

 

 

Share-based compensation

 

 

1,179

 

 

 

739

 

 

Restructuring and other charges

 

 

348

 

 

 

64

 

 

Non-GAAP operating income (loss)

 

$

723

 

 

$

(294

)

 

GAAP operating margin (loss)

 

 

(8.4

)%

 

 

(12.5

)%

 

Acquisition-related adjustments

 

 

2.1

%

 

 

3.2

%

 

Share-based compensation

 

 

9.3

%

 

 

6.3

%

 

Restructuring and other charges

 

 

2.7

%

 

 

0.5

%

 

Non-GAAP operating margin (loss)

 

 

5.7

%

 

 

(2.5

)%

 

GAAP tax rate

 

 

39.2

%

 

 

(139.0

)%

 

Income tax effects

 

 

(26.2

)%

 

 

152.0

%

 

Non-GAAP tax rate

 

 

13.0

%

 

 

13.0

%

 

(In Millions, Except Per Share Amounts)

 

Mar 30, 2024

 

Apr 1, 2023

 

GAAP net income (loss) attributable to Intel

 

$

(381

)

 

$

(2,758

)

 

Acquisition-related adjustments

 

 

265

 

 

 

371

 

 

Share-based compensation

 

 

1,179

 

 

 

739

 

 

Restructuring and other charges

 

 

348

 

 

 

64

 

 

(Gains) losses on equity investments, net

 

 

(205

)

 

 

(169

)

 

(Gains) losses from divestiture

 

 

(39

)

 

 

(39

)

 

Adjustments attributable to non-controlling interest

 

 

(18

)

 

 

(12

)

 

Income tax effects

 

 

(390

)

 

 

1,635

 

 

Non-GAAP net income attributable to Intel

 

$

759

 

 

$

(169

)

 

 

 

 

 

 

 

GAAP earnings (loss) per share attributable to Intel—diluted

 

$

(0.09

)

 

$

(0.66

)

 

Acquisition-related adjustments

 

 

0.06

 

 

 

0.09

 

 

Share-based compensation

 

 

0.28

 

 

 

0.18

 

 

Restructuring and other charges

 

 

0.08

 

 

 

0.01

 

 

(Gains) losses on equity investments, net

 

 

(0.05

)

 

 

(0.04

)

 

(Gains) losses from divestiture

 

 

(0.01

)

 

 

(0.01

)

 

Adjustments attributable to non-controlling interest

 

 

 

 

 

 

 

Income tax effects

 

 

(0.09

)

 

 

0.39

 

 

Non-GAAP earnings per share attributable to Intel—diluted

 

$

0.18

 

 

$

(0.04

)

 

 

 

 

 

 

 

GAAP net cash used for operating activities

 

$

(1,223

)

 

$

(1,785

)

 

Net additions to property, plant, and equipment

 

 

(4,955

)

 

 

(6,964

)

 

Payments on finance leases

 

 

 

 

 

(15

)

 

Adjusted free cash flow

 

$

(6,178

)

 

$

(8,764

)

 

GAAP net cash used for investing activities

 

$

(2,563

)

 

$

(8,521

)

 

GAAP net cash provided by financing activities

 

$

3,630

 

 

$

7,394

 

 

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.

 

 

Q2 2024 Outlook1

 

 

 

Approximately

 

GAAP gross margin percentage

 

 

40.2

%

 

Acquisition-related adjustments

 

 

1.7

%

 

Share-based compensation

 

 

1.6

%

 

Non-GAAP gross margin percentage

 

 

43.5

%

 

 

 

 

 

GAAP tax rate

 

 

61

%

 

Income tax effects

 

 

(48

)%

 

Non-GAAP tax rate

 

 

13

%

 

 

 

 

 

GAAP earnings (loss) per share attributable to Intel—diluted

 

$

(0.05

)

 

Acquisition-related adjustments

 

 

0.06

 

 

Share-based compensation

 

 

0.22

 

 

(Gains) losses from divestiture

 

 

(0.01

)

 

Adjustments attributable to non-controlling interest

 

 

 

 

Income tax effects

 

 

(0.12

)

 

Non-GAAP earnings per share attributable to Intel—diluted

 

$

0.10

 

 

1 Non-GAAP gross margin percentage and non-GAAP EPS outlook based on the mid-point of the revenue range.



Contact:

Kylie Altman
Investor Relations
1-916-356-0320
kylie.altman@intel.com

Sophie Won
Media Relations
1-408-653-0475
sophie.won@intel.com