Intel Reports First-Quarter 2024 Financial Results

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:

  • the high level of competition and rapid technological change in our industry;
  • the significant long-term and inherently risky investments we are making in R&D and manufacturing facilities that may not realize a favorable return;
  • the complexities and uncertainties in developing and implementing new semiconductor products and manufacturing process technologies;
  • our ability to time and scale our capital investments appropriately and successfully secure favorable alternative financing arrangements and government grants;
  • implementing new business strategies and investing in new businesses and technologies;
  • changes in demand for our products;
  • macroeconomic conditions and geopolitical tensions and conflicts, including geopolitical and trade tensions between the US and China, the impacts of Russia's war on Ukraine, tensions and conflict affecting Israel and the Middle East, and rising tensions between mainland China and Taiwan;
  • the evolving market for products with AI capabilities;
  • our complex global supply chain, including from disruptions, delays, trade tensions and conflicts, or shortages;
  • product defects, errata and other product issues, particularly as we develop next-generation products and implement next-generation manufacturing process technologies;
  • potential security vulnerabilities in our products;
  • increasing and evolving cybersecurity threats and privacy risks;
  • IP risks including related litigation and regulatory proceedings;
  • the need to attract, retain, and motivate key talent;
  • strategic transactions and investments;
  • sales-related risks, including customer concentration and the use of distributors and other third parties;
  • our significantly reduced return of capital in recent years;
  • our debt obligations and our ability to access sources of capital;
  • complex and evolving laws and regulations across many jurisdictions;
  • fluctuations in currency exchange rates;
  • changes in our effective tax rate;
  • catastrophic events;
  • environmental, health, safety, and product regulations;
  • our initiatives and new legal requirements with respect to corporate responsibility matters; and
  • other risks and uncertainties described in this release, our 2023 Form 10-K, and our other filings with the SEC.

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

)


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