Record Server Microprocessor Revenue
Revenue up 9 Percent Year-over-Year
Gross Margin up 4 Points Year-over-Year
Operating Income up 23 Percent Year-over-Year
Net Income $1.4 Billion; EPS 25 Cents

Intel Corporation announced record first-quarter revenue of $9.7 billion, operating income of $2.1 billion, net income of $1.4 billion and earnings per share of 25 cents.

“Our first quarter results demonstrate a strengthening core business and a solid global market environment,” said Paul Otellini, Intel president and CEO. “We saw healthy demand for our leading-edge processors and chipsets across all segments. Looking forward, we remain optimistic about our growth opportunities as we continue to reap the benefits of our 45nm technology leadership.”

Results for the first quarter of 2008 included the effects of restructuring and asset impairment charges that lowered EPS by 4 cents. Results in last year’s first quarter included tax adjustments along with the effects of restructuring and asset impairment charges that together increased EPS by approximately 5 cents. Results for the fourth quarter of 2007 included the effects of restructuring and asset impairment charges that reduced EPS by approximately 2.5 cents.

Financial and Key Product Information
Intel’s microprocessor and chipset businesses came in as expected. Total microprocessor units were lower sequentially, with the ASP approximately flat.
Consistent with the company’s updated expectations, NAND revenue was flat as significant price declines offset unit growth.
Gross margin was 53.8 percent, in line with the company’s revised expectation.
Restructuring and asset impairment charges of $329 million included $275 million in impairment charges for the assets transferred to Numonyx.
The effective tax rate was 33.5 percent, higher than the previous expectation of approximately 31 percent, primarily driven by a higher than expected proportion of profits being in higher-tax jurisdictions along with the tax effects of impairment charges related to the assets sold to Numonyx.