SANTA CLARA, Kalifornie, 16. července 2002 - Společnost Intel Corporation oznámila příjmy za čtvrté čtvrtletí ve výši 6,3 miliard USD, což je o 7 procent méně než v předcházejícím období a v meziročním srovnání přibližně na stejné úrovni. Čistý zisk ve druhém čtvrtletí dosáhl 446 miliónů USD, což je o 52 procent méně než v předcházejícím období a o 128 procent více v meziročním srovnání.
Zisk na akcii ve výši 0,07 USD představuje pokles oproti předchozímu období o 50 procent a meziroční nárůst o 133 procent z 0,03 USD ve druhém čtvrtletí roku 2001. Tyto výsledky zahrnují poplatky spojené s prodejními náklady ve výši 106 miliónů USD, které vycházejí z rozhodnutí postupně snižovat divizi Intel Online Services a dále odpisy nehmotného majetku především spojené s divizí PC karet Xirocom pro bezdrátové sítě.
"V tvrdém obchodním prostředí jsme si i nadále vedli dobře" řekl Craig R. Barrett, výkonný ředitel společnosti Intel. "Naše investice do technologií a výroby nám umožnily nabízet procesory s nejlepším výkonem, což se odráží v rostoucích tržních podílech napříč všemi segmenty. Zaznamenali jsme také nárůst v naší komunikační divizi, podpořený solidními přijmy z prodejů pamětí flash a nárůstem tržního podílu."
"Ačkoliv došlo pouze k pomalému ozdravení celého oboru, stále očekáváme mírný sezónní nárůst poptávky v druhé polovině roku" dodal Barrett. "V tomto prostředí zůstává naše strategie stejná: Zaměříme se na výkon, snižování nákladů a investice do dalšího zlepšování naší konkurenční výhody a dlouhodobého růstu".
Plná anglická verze zprávy:
Intel Reports Second-Quarter Results
Second-Quarter Earnings Per Share $0.07;
Earnings Excluding Acquisition-Related Costs $0.09 Per Share
Charges Related to Online Services and Wireline PC Card Businesses Included
SANTA CLARA, Calif., July 16, 2002 - Intel Corporation today announced second-quarter revenue of $6.3 billion, down 7 percent sequentially and approximately flat year-over-year.
Second-quarter net income was $446 million, down 52 percent sequentially and up 128 percent year-over-year. Earnings per share were $0.07, down 50 percent sequentially and up 133 percent from $0.03 in the second quarter of 2001. The results include a $106-million charge to cost of sales related to the decision to wind down Intel(R) Online Services, along with a $112- million write-off of acquired intangibles, primarily related to Xircom PC cards for wireline networking. In accordance with generally accepted accounting principles (GAAP), the 2001 results reflect charges for the amortization of goodwill, which is no longer amortized in the current year with the adoption of FASB rule 142.
Second-quarter net income excluding acquisition-related costs1 was $620 million, down 39 percent sequentially and down 27 percent year-over-year. Earnings excluding acquisition-related costs were $0.09 per share, down 40 percent sequentially and down 25 percent from $0.12 in the second quarter of 2001. These results include the impact of the $106-million charge related to the online services business.
Acquisition-related costs during the quarter consisted of $14 million in one-time charges for purchased in-process research and development, and $229 million in amortization of acquisition-related intangibles, write-off of intangibles and other costs. Intel expects to continue to report earnings excluding acquisition-related costs through the end of the year to provide a consistent basis for financial comparisons.
"In a tough environment, we continued to execute well," said Craig R. Barrett, Intel chief executive officer. "Our investments in technology and manufacturing are delivering processors with clear performance leadership, resulting in market segment share gains across the board. We also saw growth in our communications businesses, led by solid flash memory revenue and share growth.
"Although an overall industry recovery has been slow to materialize, we still expect a modest seasonal increase in demand in the second half," Barrett continued. "In this environment, our strategy remains the same: Focus on execution, take prudent cost cutting measures, and invest to further improve our competitive position and long-term growth prospects."
BUSINESS OUTLOOK
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed after June 29, 2002.
Continuing uncertainty in global economic conditions makes it particularly difficult to predict product demand and other related matters.
** Revenue in the third quarter is expected to be between $6.3 billion and $6.9 billion.
** Gross margin percentage in the third quarter is expected to be 51 percent, plus or minus a couple of points. The second-quarter gross margin percentage was 47 percent and would have been 48.7 percent without the $106-million charge related to the online services business. Intel"s gross margin percentage varies primarily with revenue levels, product mix and pricing, changes in unit costs, capacity utilization, and timing of factory ramps and associated costs.
** Gross margin percentage for 2002 is expected to be 51 percent, plus or minus a few points, lower than the previous expectation of 53 percent, plus or minus a few points, primarily due to second-quarter revenue levels and charges.
** Expenses (R&D, excluding in-process R&D, plus MG&A) in the third quarter are expected to be approximately $2.1 billion. In the second half of 2002, the company expects to reduce its workforce by approximately 4,000 employees exclusive of acquisitions, primarily through attrition, voluntary separation programs and some targeted business disinvestments. Expenses, particularly certain marketing- and compensation-related expenses, vary depending on the level of revenue and profits.
** R&D spending for 2002, excluding in-process R&D, is expected to be approximately $4.0 billion, lower than the previous expectation of $4.1 billion.
** Capital spending for 2002 is expected to be between $5.0 billion and $5.2 billion, lower than the previous expectation of $5.5 billion, primarily due to non-fab-related spending reductions, with no change in the company"s current and future microprocessor capacity plans.
** Gains or losses from equity investments and interest and other in the third quarter are expected to be a net loss of $25 million due to the expectation of a net loss on equity investments of approximately $75 million, primarily as a result of impairment charges. Gains or losses will vary depending on equity market levels and volatility, gains or losses realized on the sale or exchange of investments, determination of impairment charges, including potential impairment of non-marketable investments, interest rates, cash balances, mark-to-market of derivative instruments, and assuming no unanticipated items.
** The tax rate for 2002 is expected to be approximately 28.4 percent, excluding the impact of acquisition-related costs.
** Depreciation is expected to be approximately $1.2 billion in the third quarter and approximately $4.7 billion for the year.
** Amortization of acquisition-related intangibles and costs is expected to be approximately $100 million in the third quarter and approximately $530 million for the full year.
The statements in this document that refer to plans and expectations for the current quarter and the future are forward-looking statements that involve a number of risks and uncertainties. In addition to the factors discussed above, factors that could cause actual results to differ materially include the following: business and economic conditions and trends in the computing and communications industries in various geographic regions; factors associated with doing business outside the United States, including currency controls and fluctuations, and tariff, import and other related restrictions and regulations; possible disruption in commercial activities related to terrorist activity or armed conflict in the United States, Israel and other locations, such as changes in logistics, security arrangements, communications infrastructure, and reduced end-user purchases relative to expectations; civil or military unrest or political instability in a locale; changes in customer order patterns; changes in the mix of microprocessor types and speeds sold as well as the mix of related chipsets, motherboards, purchased components and other semiconductor and non-semiconductor products; competitive factors, such as competing chip architectures and manufacturing technologies, competing software-compatible microprocessors, and acceptance of new products in specific market segments; pricing pressures; development and timing of introduction of compelling software applications; excess or obsolete inventory and variations in inventory valuation; continued success in technological advances, including development and implementation of new processes and strategic products for specific market segments; execution of the manufacturing ramp including the transition to 0.13-micron process technology; excess manufacturing capacity; the ability to sustain and grow new networking, communications, wireless and other Internet-related businesses and successfully integrate and operate any acquired businesses; unanticipated costs or other adverse effects associated with processors and other products containing errata (deviations from published specifications); litigation involving intellectual property, stockholder and other issues; and other risk factors listed from time to time in the company"s SEC reports, including but not limited to the report on Form 10-Q for the quarter ended March 30, 2002 (Part I, Item 2, Outlook section).
Status of Business Outlook and Mid-Quarter Business Update
Intel"s corporate representatives will meet privately during the quarter with investors, investment analysts, the media and others, and may reiterate the Business Outlook. Intel intends to publish a Mid-Quarter Business Update on Sept. 5. From the close of business on Aug. 30 until publication of the Update, Intel will observe a "Quiet Period" during which the Outlook and the company"s filings with the SEC on Forms 10-K and 10-Q should be considered to be historical, speaking as of prior to the Quiet Period only and not subject to update by the company. For more information about the Outlook, Update and related Quiet Periods, please refer to the Outlook section of the Web site at www.intc.com.
SECOND-QUARTER REVIEW
Financial Review
** The average selling price of Intel Architecture microprocessor units was slightly lower sequentially. The average selling price excluding processors shipped for the Microsoft* XBox was approximately flat.
** The gross margin percentage was 47 percent, and would have been 48.7 percent without the $106-million charge related to the online services business, consistent with the revised expectation of 49 percent plus or minus a couple of points. The first-quarter gross margin percentage was 51.3 percent, and would have been 53.6 percent without the $155-million charge related to the Intergraph agreement. The sequential decline in the gross margin percentage is primarily due to lower revenue.
** Depreciation was $1.1 billion, slightly lower than the previous expectation of $1.2 billion.
** Gains or losses on equity investments and interest and other resulted in a net loss of $16 million, slightly below the previous expectation of zero. The net loss on equity investments was $59 million, including the impact of impairment charges of approximately $67 million.
** The tax rate was approximately 28.4 percent, excluding the impact of acquisition-related costs.
Product Shipment Trends (Sequential)
** Intel Architecture microprocessor unit shipments were lower.
** Chipset unit shipments were lower.
** Motherboard unit shipments were approximately flat.
** Flash memory unit shipments were higher.
** Ethernet connectivity product unit shipments were higher.
Intel Architecture Business
For the desktop, Intel introduced the Pentium(R) 4 processor at 2.53, 2.4 and 2.26 GHz, and launched new Intel(R) Celeron(R) processors at 1.8, 1.7 and 1.4 GHz. The company complemented these industry-leading performance and value segment processors with three new chipsets -- the Intel 845G, Intel 845E and Intel 845GL -- featuring a new integrated graphics core (G/GL) along with built-in support for Hi-Speed Universal Serial Bus (USB) 2.0 ports.
In the mobile segment, Intel introduced five mobile Pentium 4 microprocessors for full-size and thin-and-light laptop computers, running at 2.0, 1.9, 1.8, 1.5 and 1.4 GHz. The company also announced three mobile Pentium III processors and five mobile Intel Celeron processors optimized for thin-and-light and ultra-portable notebook systems.
For the enterprise segment, Intel announced the first commercial shipments of Intel(R) Itanium(R) 2 processor-based systems and software to customers worldwide. The new systems deliver as much as twice the performance of first-generation, Itanium-based systems and outperform competing Sun systems with as much as 50 percent higher transaction processing performance. Intel also introduced the Intel(R) Xeon? processor for two-way server and workstation platforms running at 2.4 GHz, along with a dozen server building block products including new boards, chassis, RAID controllers and management software.
Intel Communications Group
Intel introduced six Gigabit Ethernet adapter chips for server and desktop systems, and unveiled the world"s first single-chip controller running at 10 Gigabits per second. Dell Computer will use Intel"s Gigabit Ethernet controller in future OptiPlex* desktop PCs.
In wireless networking, Intel introduced a dual-band wireless LAN access point that supports 802.11a and 802.11b wireless networking adapters. In addition, Intel"s wireless LAN PC Cards will be offered by IBM with certain ThinkPad* T30 notebook PCs.
In network processing, Intel introduced a new family of media access controllers (MAC) that simplify equipment development. In addition, Alcatel selected Intel(R) Media Switch silicon for its upcoming OmniSwitch* product line.
In optical networking, Intel purchased tunable laser technology from New Focus, and plans to combine this technology with its automated optical module assembly capability to accelerate the development of tunable optical transceivers.
Wireless Communications and Computing Group
Intel introduced the world"s highest-performing flash memories for cell phones, which operate up to four times faster than existing flash chips while consuming less power. The company also detailed packaging techniques that will enable smaller cell phone designs.
Philips Electronics and Viewsonic selected Intel(R) XScale? technology-based processors for their new wireless monitors. Intel also announced a reference design that helps customers speed the development of wireless monitors based on Microsoft"s Mira* technology.
IBM and Intel announced a program to help European independent software vendors accelerate the development of high-performance wireless solutions based on IBM"s WebSphere* platform and Intel-based systems and wireless devices. In addition, Symbian optimized its latest operating system for data-enabled cellular phones for Intel(R) XScale? technology-based processors.
Technology and Manufacturing Group
During the quarter, Intel achieved a crossover in its transition to 0.13-micron technology, with over 50 percent of microprocessor shipments now on the new process technology. Intel"s 300-mm, 0.13-micron technology is yielding ahead of expectations, and Fab 11X in New Mexico is scheduled to be in commercial production in October.
The company also announced plans to resume construction of Fab 24 in Ireland. The $2- billion facility is scheduled to begin producing 90-nanometer microprocessors on 300-mm wafers in the first half of 2004.
Intel also became the first semiconductor manufacturer to order a full-field commercial Extreme Ultra-Violet (EUV) lithography exposure tool. EUV lithography will enable Intel to shrink feature sizes well below 50 nanometers and sustain Moore"s Law well into the next decade.
WEBCAST
Intel will hold a public webcast at 2:30 p.m. PDT on its Investor Relations Web site at www.intc.com. A replay of the webcast will be available until July 23 on the Web site and by phone at (719) 457-0820, confirmation code 450826.
Intel, the world"s largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom
1Acquisition-related costs consist of one-time write-offs of purchased in-process R&D, amortization of acquisition-related intangibles and costs, write-offs of acquisition-related intangibles, and, prior to 2002, amortization of goodwill. Intangibles include, for example, the value of the acquired companies" developed technology. Earnings excluding acquisition-related costs differ from earnings presented according to GAAP because they exclude these costs.
Intel, Pentium, Celeron, Itanium, Xeon and XScale are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
* Other marks and brands may be claimed as the property of others.
Zisk na akcii ve výši 0,07 USD představuje pokles oproti předchozímu období o 50 procent a meziroční nárůst o 133 procent z 0,03 USD ve druhém čtvrtletí roku 2001. Tyto výsledky zahrnují poplatky spojené s prodejními náklady ve výši 106 miliónů USD, které vycházejí z rozhodnutí postupně snižovat divizi Intel Online Services a dále odpisy nehmotného majetku především spojené s divizí PC karet Xirocom pro bezdrátové sítě.
"V tvrdém obchodním prostředí jsme si i nadále vedli dobře" řekl Craig R. Barrett, výkonný ředitel společnosti Intel. "Naše investice do technologií a výroby nám umožnily nabízet procesory s nejlepším výkonem, což se odráží v rostoucích tržních podílech napříč všemi segmenty. Zaznamenali jsme také nárůst v naší komunikační divizi, podpořený solidními přijmy z prodejů pamětí flash a nárůstem tržního podílu."
"Ačkoliv došlo pouze k pomalému ozdravení celého oboru, stále očekáváme mírný sezónní nárůst poptávky v druhé polovině roku" dodal Barrett. "V tomto prostředí zůstává naše strategie stejná: Zaměříme se na výkon, snižování nákladů a investice do dalšího zlepšování naší konkurenční výhody a dlouhodobého růstu".
Plná anglická verze zprávy:
Intel Reports Second-Quarter Results
Second-Quarter Earnings Per Share $0.07;
Earnings Excluding Acquisition-Related Costs $0.09 Per Share
Charges Related to Online Services and Wireline PC Card Businesses Included
SANTA CLARA, Calif., July 16, 2002 - Intel Corporation today announced second-quarter revenue of $6.3 billion, down 7 percent sequentially and approximately flat year-over-year.
Second-quarter net income was $446 million, down 52 percent sequentially and up 128 percent year-over-year. Earnings per share were $0.07, down 50 percent sequentially and up 133 percent from $0.03 in the second quarter of 2001. The results include a $106-million charge to cost of sales related to the decision to wind down Intel(R) Online Services, along with a $112- million write-off of acquired intangibles, primarily related to Xircom PC cards for wireline networking. In accordance with generally accepted accounting principles (GAAP), the 2001 results reflect charges for the amortization of goodwill, which is no longer amortized in the current year with the adoption of FASB rule 142.
Second-quarter net income excluding acquisition-related costs1 was $620 million, down 39 percent sequentially and down 27 percent year-over-year. Earnings excluding acquisition-related costs were $0.09 per share, down 40 percent sequentially and down 25 percent from $0.12 in the second quarter of 2001. These results include the impact of the $106-million charge related to the online services business.
Acquisition-related costs during the quarter consisted of $14 million in one-time charges for purchased in-process research and development, and $229 million in amortization of acquisition-related intangibles, write-off of intangibles and other costs. Intel expects to continue to report earnings excluding acquisition-related costs through the end of the year to provide a consistent basis for financial comparisons.
"In a tough environment, we continued to execute well," said Craig R. Barrett, Intel chief executive officer. "Our investments in technology and manufacturing are delivering processors with clear performance leadership, resulting in market segment share gains across the board. We also saw growth in our communications businesses, led by solid flash memory revenue and share growth.
"Although an overall industry recovery has been slow to materialize, we still expect a modest seasonal increase in demand in the second half," Barrett continued. "In this environment, our strategy remains the same: Focus on execution, take prudent cost cutting measures, and invest to further improve our competitive position and long-term growth prospects."
BUSINESS OUTLOOK
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed after June 29, 2002.
Continuing uncertainty in global economic conditions makes it particularly difficult to predict product demand and other related matters.
** Revenue in the third quarter is expected to be between $6.3 billion and $6.9 billion.
** Gross margin percentage in the third quarter is expected to be 51 percent, plus or minus a couple of points. The second-quarter gross margin percentage was 47 percent and would have been 48.7 percent without the $106-million charge related to the online services business. Intel"s gross margin percentage varies primarily with revenue levels, product mix and pricing, changes in unit costs, capacity utilization, and timing of factory ramps and associated costs.
** Gross margin percentage for 2002 is expected to be 51 percent, plus or minus a few points, lower than the previous expectation of 53 percent, plus or minus a few points, primarily due to second-quarter revenue levels and charges.
** Expenses (R&D, excluding in-process R&D, plus MG&A) in the third quarter are expected to be approximately $2.1 billion. In the second half of 2002, the company expects to reduce its workforce by approximately 4,000 employees exclusive of acquisitions, primarily through attrition, voluntary separation programs and some targeted business disinvestments. Expenses, particularly certain marketing- and compensation-related expenses, vary depending on the level of revenue and profits.
** R&D spending for 2002, excluding in-process R&D, is expected to be approximately $4.0 billion, lower than the previous expectation of $4.1 billion.
** Capital spending for 2002 is expected to be between $5.0 billion and $5.2 billion, lower than the previous expectation of $5.5 billion, primarily due to non-fab-related spending reductions, with no change in the company"s current and future microprocessor capacity plans.
** Gains or losses from equity investments and interest and other in the third quarter are expected to be a net loss of $25 million due to the expectation of a net loss on equity investments of approximately $75 million, primarily as a result of impairment charges. Gains or losses will vary depending on equity market levels and volatility, gains or losses realized on the sale or exchange of investments, determination of impairment charges, including potential impairment of non-marketable investments, interest rates, cash balances, mark-to-market of derivative instruments, and assuming no unanticipated items.
** The tax rate for 2002 is expected to be approximately 28.4 percent, excluding the impact of acquisition-related costs.
** Depreciation is expected to be approximately $1.2 billion in the third quarter and approximately $4.7 billion for the year.
** Amortization of acquisition-related intangibles and costs is expected to be approximately $100 million in the third quarter and approximately $530 million for the full year.
The statements in this document that refer to plans and expectations for the current quarter and the future are forward-looking statements that involve a number of risks and uncertainties. In addition to the factors discussed above, factors that could cause actual results to differ materially include the following: business and economic conditions and trends in the computing and communications industries in various geographic regions; factors associated with doing business outside the United States, including currency controls and fluctuations, and tariff, import and other related restrictions and regulations; possible disruption in commercial activities related to terrorist activity or armed conflict in the United States, Israel and other locations, such as changes in logistics, security arrangements, communications infrastructure, and reduced end-user purchases relative to expectations; civil or military unrest or political instability in a locale; changes in customer order patterns; changes in the mix of microprocessor types and speeds sold as well as the mix of related chipsets, motherboards, purchased components and other semiconductor and non-semiconductor products; competitive factors, such as competing chip architectures and manufacturing technologies, competing software-compatible microprocessors, and acceptance of new products in specific market segments; pricing pressures; development and timing of introduction of compelling software applications; excess or obsolete inventory and variations in inventory valuation; continued success in technological advances, including development and implementation of new processes and strategic products for specific market segments; execution of the manufacturing ramp including the transition to 0.13-micron process technology; excess manufacturing capacity; the ability to sustain and grow new networking, communications, wireless and other Internet-related businesses and successfully integrate and operate any acquired businesses; unanticipated costs or other adverse effects associated with processors and other products containing errata (deviations from published specifications); litigation involving intellectual property, stockholder and other issues; and other risk factors listed from time to time in the company"s SEC reports, including but not limited to the report on Form 10-Q for the quarter ended March 30, 2002 (Part I, Item 2, Outlook section).
Status of Business Outlook and Mid-Quarter Business Update
Intel"s corporate representatives will meet privately during the quarter with investors, investment analysts, the media and others, and may reiterate the Business Outlook. Intel intends to publish a Mid-Quarter Business Update on Sept. 5. From the close of business on Aug. 30 until publication of the Update, Intel will observe a "Quiet Period" during which the Outlook and the company"s filings with the SEC on Forms 10-K and 10-Q should be considered to be historical, speaking as of prior to the Quiet Period only and not subject to update by the company. For more information about the Outlook, Update and related Quiet Periods, please refer to the Outlook section of the Web site at www.intc.com.
SECOND-QUARTER REVIEW
Financial Review
** The average selling price of Intel Architecture microprocessor units was slightly lower sequentially. The average selling price excluding processors shipped for the Microsoft* XBox was approximately flat.
** The gross margin percentage was 47 percent, and would have been 48.7 percent without the $106-million charge related to the online services business, consistent with the revised expectation of 49 percent plus or minus a couple of points. The first-quarter gross margin percentage was 51.3 percent, and would have been 53.6 percent without the $155-million charge related to the Intergraph agreement. The sequential decline in the gross margin percentage is primarily due to lower revenue.
** Depreciation was $1.1 billion, slightly lower than the previous expectation of $1.2 billion.
** Gains or losses on equity investments and interest and other resulted in a net loss of $16 million, slightly below the previous expectation of zero. The net loss on equity investments was $59 million, including the impact of impairment charges of approximately $67 million.
** The tax rate was approximately 28.4 percent, excluding the impact of acquisition-related costs.
Product Shipment Trends (Sequential)
** Intel Architecture microprocessor unit shipments were lower.
** Chipset unit shipments were lower.
** Motherboard unit shipments were approximately flat.
** Flash memory unit shipments were higher.
** Ethernet connectivity product unit shipments were higher.
Intel Architecture Business
For the desktop, Intel introduced the Pentium(R) 4 processor at 2.53, 2.4 and 2.26 GHz, and launched new Intel(R) Celeron(R) processors at 1.8, 1.7 and 1.4 GHz. The company complemented these industry-leading performance and value segment processors with three new chipsets -- the Intel 845G, Intel 845E and Intel 845GL -- featuring a new integrated graphics core (G/GL) along with built-in support for Hi-Speed Universal Serial Bus (USB) 2.0 ports.
In the mobile segment, Intel introduced five mobile Pentium 4 microprocessors for full-size and thin-and-light laptop computers, running at 2.0, 1.9, 1.8, 1.5 and 1.4 GHz. The company also announced three mobile Pentium III processors and five mobile Intel Celeron processors optimized for thin-and-light and ultra-portable notebook systems.
For the enterprise segment, Intel announced the first commercial shipments of Intel(R) Itanium(R) 2 processor-based systems and software to customers worldwide. The new systems deliver as much as twice the performance of first-generation, Itanium-based systems and outperform competing Sun systems with as much as 50 percent higher transaction processing performance. Intel also introduced the Intel(R) Xeon? processor for two-way server and workstation platforms running at 2.4 GHz, along with a dozen server building block products including new boards, chassis, RAID controllers and management software.
Intel Communications Group
Intel introduced six Gigabit Ethernet adapter chips for server and desktop systems, and unveiled the world"s first single-chip controller running at 10 Gigabits per second. Dell Computer will use Intel"s Gigabit Ethernet controller in future OptiPlex* desktop PCs.
In wireless networking, Intel introduced a dual-band wireless LAN access point that supports 802.11a and 802.11b wireless networking adapters. In addition, Intel"s wireless LAN PC Cards will be offered by IBM with certain ThinkPad* T30 notebook PCs.
In network processing, Intel introduced a new family of media access controllers (MAC) that simplify equipment development. In addition, Alcatel selected Intel(R) Media Switch silicon for its upcoming OmniSwitch* product line.
In optical networking, Intel purchased tunable laser technology from New Focus, and plans to combine this technology with its automated optical module assembly capability to accelerate the development of tunable optical transceivers.
Wireless Communications and Computing Group
Intel introduced the world"s highest-performing flash memories for cell phones, which operate up to four times faster than existing flash chips while consuming less power. The company also detailed packaging techniques that will enable smaller cell phone designs.
Philips Electronics and Viewsonic selected Intel(R) XScale? technology-based processors for their new wireless monitors. Intel also announced a reference design that helps customers speed the development of wireless monitors based on Microsoft"s Mira* technology.
IBM and Intel announced a program to help European independent software vendors accelerate the development of high-performance wireless solutions based on IBM"s WebSphere* platform and Intel-based systems and wireless devices. In addition, Symbian optimized its latest operating system for data-enabled cellular phones for Intel(R) XScale? technology-based processors.
Technology and Manufacturing Group
During the quarter, Intel achieved a crossover in its transition to 0.13-micron technology, with over 50 percent of microprocessor shipments now on the new process technology. Intel"s 300-mm, 0.13-micron technology is yielding ahead of expectations, and Fab 11X in New Mexico is scheduled to be in commercial production in October.
The company also announced plans to resume construction of Fab 24 in Ireland. The $2- billion facility is scheduled to begin producing 90-nanometer microprocessors on 300-mm wafers in the first half of 2004.
Intel also became the first semiconductor manufacturer to order a full-field commercial Extreme Ultra-Violet (EUV) lithography exposure tool. EUV lithography will enable Intel to shrink feature sizes well below 50 nanometers and sustain Moore"s Law well into the next decade.
WEBCAST
Intel will hold a public webcast at 2:30 p.m. PDT on its Investor Relations Web site at www.intc.com. A replay of the webcast will be available until July 23 on the Web site and by phone at (719) 457-0820, confirmation code 450826.
Intel, the world"s largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom
1Acquisition-related costs consist of one-time write-offs of purchased in-process R&D, amortization of acquisition-related intangibles and costs, write-offs of acquisition-related intangibles, and, prior to 2002, amortization of goodwill. Intangibles include, for example, the value of the acquired companies" developed technology. Earnings excluding acquisition-related costs differ from earnings presented according to GAAP because they exclude these costs.
Intel, Pentium, Celeron, Itanium, Xeon and XScale are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
* Other marks and brands may be claimed as the property of others.
