Chip giant Intel announced good fourth quarter and fiscal 1999 results today, citing strong demand for its microprocessors, chip sets, motherboards and flash memory.
Revenue for the company's fourth quarter ended December 25, 1999, rose 8 per cent on the year-ago quarter to reach $US8.2 billion, Intel said in a statement. Excluding acquisition-related costs, fourth-quarter net income was $2.4 billion, a 15 per cent increase over the same quarter in fiscal 1998. Once the quarter's acquisition-related costs - about $300 million - are factored in, Intel reported a net income of $2.1 billion, up 2 per cent on the year-ago quarter.
In the fourth quarter of 1998, Intel bought DSP Communications, IPivot, Parity Software Development and Stanford Telecommunications' telecommunications component products division.
For 1999 as a whole, Intel reported $29.4 billion in revenue, a rise of 12 per cent from the previous year's results and the company's thirteenth consecutive year of revenue growth. Excluding costs related to acquisitions, Intel's net income for 1999 was $8.1 billion, up 29 per cent from $6.3 billion recorded in 1998. Adding in costs related to the company's purchases - a total of $803 million - Intel recorded net income for fiscal 1999 of $7.3 billion, a rise of 21 percent on $6.1 billion reported for fiscal 1998.
Over the course of last year, Intel acquired 12 companies for a total of around $6 billion as a way to advance its networking and communications operations.
Looking ahead to this year, Intel said in the statement that it expects a slight fall in revenue in the first quarter of 2000 compared to the company's fourth quarter of fiscal 1999 due to seasonal factors. The chip giant predicts that its spending on research and development will be $3.8 billion for 2000, up from $3.1 billion in 1999.