Intel 2008 Annual Report Download - page 43

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Table of Contents
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (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 graphs set forth revenue information of geographic regions for the periods indicated:
Geographic Breakdown of Revenue
Our net revenue was $37.6 billion in 2008, a decrease of 2% compared to 2007. Higher revenue from the sale of
microprocessors and chipsets was more than offset by the impacts of divestitures and lower revenue from the sale of
motherboards. Revenue from the sale of NOR flash memory and cellular baseband products declined approximately
$1.7 billion, primarily as a result of divestiture of these businesses. Revenue in the Americas region decreased 4% in 2008
compared to 2007. Revenue in the Asia-Pacific, Europe, and Japan regions remained approximately flat in 2008 compared to
2007.
38
2008
2007
2006
% of
% of
% of
(Dollars in Millions, Except Per Share Amounts)
Dollars
Revenue
Dollars
Revenue
Dollars
Revenue
Net revenue
$
37,586
100.0
%
$
38,334
100.0
$
35,382
100.0
Cost of sales
16,742
44.5
%
18,430
48.1
17,164
48.5
Gross margin
20,844
55.5
%
19,904
51.9
18,218
51.5
Research and development
5,722
15.2
%
5,755
15.0
5,873
16.6
Marketing, general and administrative
5,458
14.6
%
5,417
14.2
6,138
17.3
Restructuring and asset impairment charges
710
1.9
%
516
1.3
555
1.6
Operating income
8,954
23.8
%
8,216
21.4
5,652
16.0
Gains (losses) on equity method investments, net
(1,380
)
(3.7
)%
3
—
2
—
Gains (losses) on other equity investments, net
(376
)
(1.0
)%
154
0.4
212
0.6
Interest and other, net
488
1.3
%
793
2.1
1,202
3.4
Income before taxes
7,686
20.4
%
9,166
23.9
7,068
20.0
Provision for taxes
2,394
6.3
%
2,190
5.7
2,024
5.7
Net income
$
5,292
14.1
%
$
6,976
18.2
$
5,044
14.3
Diluted earnings per share
$
0.92
$
1.18
$
0.86