Intel Corporation
Intel Corp. reported its fourth quarter and full year 2015 results on 14th Jan. It reported a Y-o-Y increase of 1 % in quarterly revenue to $ 14.9 billion. The operating income was $ 4.3 billion, net income was $ 3.6 billion and the EPS was flat at $ 0.74. For the full year 2015, Intel reported a 1 % decrease in revenue to $ 55.4 billion while its operating income was $ 14.0 billion, net income was $ 11.4 billion and the EPS was up 1 % to $ 2.33.
The company’s gross margin was down 1.1 percentage points both for the fourth quarter as well as the year. Net income for the quarter was down from $ 3.7 billion to $ 3.6 billion and down from $ 11.7 billion to $ 11.4 billion for the year. The company spent 4 % more on R&D and marketing
…show more content…
For the year, an all-time record growth in the retail transportation and video segments boosted the group revenue by 7 % to $ 2.3 billion.
Software and services operating segments had revenue of $ 543 million, down 2 % sequentially and down 3 % year-over-year. Non-Volatile Memory Solution Group revenue was flat sequentially and up 10 % year-over-year.
Intel Security Group was flat on a GAAP basis and up 6 % on a constant currency basis. Due to the shift of focus on endpoint technology, the group drove higher material efficiencies and achieved a 44 % improvement in operating income.
The CEO, Brian Krzanich, accepted that there was a significant decline in PC demand through the year. However, he sounded assured that Intel’s results for the fourth quarter were consistent with expectations, marking a strong finish to the year. He said, “Taken as a whole, 2015 demonstrated the benefits of our strategy ….. That strategy is also resulting in the evolution of our business model to focus on three keys areas of growth, the Data Centre, the Internet of Things and Memory. Our results reflect that evolution.”
…show more content…
This business provides a foundation of IP and a source of cash flows. The company introduced a revolutionary new class of memory call 3D XPoint, the industry's first new memory technology in more than two decades. The NAND solutions group grew more than 20 % to another all-time record of $ 2.6 billion. Later this year, the company will start producing the upgraded Dalian, China fab and will manufacture both 3D NAND and 3D XPoint versions.
Outlook:
The company provides a soft outlook for the first quarter as a sign of caution on the level of economic growth, particularly in China. The mid-point of the revenue range is expected to be $ 14.1 billion with a gross margin of around 62 % including the effect of an extra work week and the recently completed acquisition of Altera Corporation ("Altera"), a leading provider of field-programmable gate array (FPGA) technology. For the full year, the revenue growth is expected to be in the mid-to-high single digits relative to 2015 with a gross margin of 63 %.
Revenues of $10,161 million in the fiscal year ended December 2014 was seen by the organization, an increase of 5.3% over 2013.The company 's operating profit was $419 million in fiscal 2014, as compared to an operating loss of $22 million in 2013. Its net profit was $402 million in fiscal 2014, an increase of 34% over 2013 (Sutter Health, 2016).
The main contributing factor to the decline in the return on stockholders’ equity (25.37% to 8.73%) was the decline in the profit margin (11.79% vs. 5.08%). The decrease in asset turnover (1.11 to 1.00) made a small contribution to the decline, as did the decline in the debt ratio (48.4% to 41.8%).
In terms of net income, Applied Materials is a leader in the semiconductor machinery industry with 2015 net income of $1.377 billion (Applied Materials:10-K 2016). Exhibit 1 shows net income in more detail. ASML Holding, a Dutch company, is consistently comparable to Applied Materials with regards to net income. However, as a Dutch company, some of the financial figures are not easily comparable due to different accounting standards. Another leading semiconductor machinery company, LAM Research, has had significantly less net income over the past five years. However, LAM Research still holds a strong position in the industry as shown by its market share of 13.2% (MarketLine 2014) and relatively high-diluted EPS of $3.7 (LAM Research 10-K 2015).
By mid-2005 AT kearneys revenue had fallen for 11 straight quarters and it had been unprofitable for the last quarter of 2004 and the first two of 2005, amounting to loss of $36m.
...ense has decreased 82.8% from 2000 to 2004. All the above are contributing factors in Applebee’s achieving higher earnings, a 75% increase in net earnings from 2000 to 2004. Average shares has fall due to consistent share repurchasing programs by Applebee’s. Overall, the common-size analysis of the income statement are relatively consistent over the five years of study. Cost of goods has stayed consistent between 74%-75%, the Depreciation and amortization is between 9%-11%, income from Continue operations and Net Income are also both between 9%-10% in common-size analysis for income Statement. No unusual flutuations has been discovered.
The turnover of the company in 2008 was $15,627 million, gradually decreased in 2009 to $14,552 million which again decreased in 2010 to $13,772 million. We can see a gradual drop in the turnover.
Throughout its history, Intel has centered its strategy on the tenets of technological leadership and innovation (Burgelman, 1994). Intel established its reputation for taking calculated risks early on in 1969 by pioneering the metal-oxide semiconductor (MOS) processing technology. This new process technology enabled Intel to increase the number of circuits while simultaneously being able to reduce the cost-per-bit by tenfold. In 1970, Intel once again led the way with the introduction of the world’s first DRAM. While other companies had designed functioning DRAMs, they had failed to develop a process technology that would allow manufacturing of the devices to be commercially viable. By 1972, unit sales for the 1103, Intel’s original DRAM, had accounted for over 90% of the company’s $23.4 million revenue (Cogan & Burgelman, 2004).
Intel is a multinational semiconductor chip maker corporation with the main headquarters located in Santa Clara, California. Founded on July 18, 1968, they are the world’s largest and highest valued semiconductor chip manufacturer (based on the company’s income) and are also the inventor of the x86 series processor2. It was founded by two men, Gordon E. Moore and Robert Noyce; the duo came from the Fairchild Semiconductor company. Intel’s first product after founding was the 3101 Schottky TTL bipolar 64-bit static random-access memory which was nearly twice as fast as earlier iterations by Fairchild and other competing companies. In the very same year, 1969, Intel also manufactured the 3301 Schottky bipolar 1024-bit read-only memory and the first publicly available metal–oxide–semiconductor field-effect transistor silicon gate SRAM chip, which was the 256-bit 1101.
The vertical analysis shows that the percentage of total current assets to total assets increased from 50% to 52%. This means that IQ has not made major investments in the business during 2005.
This chart shows the net revenues and net earnings for the years of 2013-2009. As you observe the net revenues have been consistent in the 18,000 for at least 3 years in a row. This is a good trend for the Kraft Food Group. The trend for the net earnings is sporadic. The net earnings is also called the bottom line. This shows the amount of money that is left over after paying all of the expenses. Kraft Food Group needs to cut down on its expenses.
The first analysis will be on Verizon. The current ratio and the debt to equity ratio both improved in 2006 when compared to 2005. However, the net profit margin dropped from 9.8% to 7.0%. What does this tell us as investors...
According to the casing study, Intel’s “Rebates” and Other Ways It “Helped” Customers Intel paid customer huge pay. As the dominating company, they purposely paid other companies not to use ADM products. They paid Dell 6 billion dollars over a 5 year period (Velasquez, 2014). In addition, they knew ADM would not be able to compete with them: they took advantage of their size and used their rebate program to try and ADM from advancing in the x86 processor industry. In addition, Intel’s monolply-like behavior is displayed in the terms of quality. They did not care about customers wanting the reliable x86 processors, they wanted to monopolize the market with their product, and would pay a huge amount of money to achieve their
68 Net Profit Margin 2.02% 2.09% 1.87% Amazon Revenue 2045 1902 1745 Net Income 207 167 145 Net Profit Margin 0.27% 0.56% 1.74% Wal-Mart Revenue 1550 1450 1250 Net Income 1920 1810 1327 Net Profit Margin 3.07% 3.39% 3.39% Source: Nasdaq (2017) The financial data of a company is often an indication of the From the financial data, the sustainability and profitability of the company can be established.
Most of the revenue of 2013 has been brought by the Media Networks and Parks and Resort segments, bringing in 20.36 and 14.09 billion USD respectively. The other three segments, studio entertainment, consumer products and interactive have brought 5.98, 3.86 and 1.06 billion USD respectively.
During 1998-2003, SEC invested $19 billion into chip factories and $17 billion into manufacturing facilities for TFT-LCDs, which would be a major component for flat screen TVs and computer screens. Even though SEC was focused in the manufacturing process, it didn’t make SEC a rigid company.