Intel 2007 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2007 Intel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

Table of Contents
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATION (Continued)
Results of Operations
The following table sets forth certain consolidated statements of income data as a percentage of net revenue for the periods
indicated:
The following table sets forth revenue information of geographic regions for the periods indicated:
Our net revenue was $38.3 billion in 2007, an increase of 8% compared to 2006. Higher microprocessor unit sales were
partially offset by lower microprocessor average selling prices. Higher mobile chipset unit sales also contributed to the
increase in net revenue.
Lower NOR flash memory revenue was mostly offset by the ramp of our NAND flash memory business. The decrease in NOR
flash memory revenue was due to a significant decline in average selling prices. Lower royalty revenue was offset by higher
unit sales.
Revenue in the Asia-
Pacific region increased 11% and revenue in the Europe region increased 10% in 2007 compared to 2006,
and revenue in both the Americas region and Japan increased 3% in 2007 compared to 2006. Revenue from both mature and
emerging markets increased in 2007 compared to 2006. While the revenue in mature markets increased in all four geographic
regions, the majority of the growth in revenue occurred in the Asia-Pacific region. A substantial majority of the increase in
emerging markets also occurred in the Asia-Pacific region.
32
2007
2006
2005
% of
% of
% of
(Dollars in Millions, Except Per Share Amounts)
Dollars
Revenue
Dollars
Revenue
Dollars
Revenue
Net revenue
$
38,334
100.0
%
$
35,382
100.0
%
$
38,826
100.0
%
Cost of sales
18,430
48.1
%
17,164
48.5
%
15,777
40.6
%
Gross margin
19,904
51.9
%
18,218
51.5
%
23,049
59.4
%
Research and development
5,755
15.0
%
5,873
16.6
%
5,145
13.3
%
Marketing, general and administrative
5,401
14.1
%
6,096
17.2
%
5,688
14.7
%
Restructuring and asset impairment charges
516
1.3
%
555
1.6
%
—
—
Amortization of acquisition
-
related intangibles and costs
16
0.1
%
42
0.1
%
126
0.3
%
Operating income
8,216
21.4
%
5,652
16.0
%
12,090
31.1
%
Gains (losses) on equity investments, net
157
0.4
%
214
0.6
%
(45
)
(0.1
)%
Interest and other, net
793
2.1
%
1,202
3.4
%
565
1.5
%
Income before taxes
9,166
23.9
%
7,068
20.0
%
12,610
32.5
%
Provision for taxes
2,190
5.7
%
2,024
5.7
%
3,946
10.2
%
Net income
$
6,976
18.2
%
$
5,044
14.3
%
$
8,664
22.3
%
Diluted earnings per share
$
1.18
$
0.86
$
1.40
2007
2006
2005
% of
% of
% of
(Dollars in Millions)
Dollars
Total
Dollars
Total
Dollars
Total
Asia
-
Pacific
$
19,432
51
%
$
17,477
49
%
$
19,330
50
%
Americas
7,715
20
%
7,512
21
%
7,574
19
%
Europe
7,262
19
%
6,587
19
%
8,210
21
%
Japan
3,925
10
%
3,806
11
%
3,712
10
%
Total net revenue
$
38,334
100
%
$
35,382
100
%
$
38,826
100
%