Intel today announced Q4 revenue of $ 9.7 billion, operating income of $ 1.5 billion, net income of $ 1.5 billion and EPS of 26 cents. “Intel’s product and technology leadership yielded a strong fourth quarter with higher selling prices and record unit shipments in the fastest growing segments of the market,” said Intel President and CEO Paul Otellini. Intel completed the development of its next-generation 45nm process technology which is scheduled for production in the second half of 2007, ramping to three 300mm factories in 2008.

Intel also produced samples of Penryn, the company’s first 45nm processor, and booted the Windows* Vista*, Mac OS X*, Windows* XP and Linux operating systems using first silicon. Capital spending: $ 5.5 billion plus or minus $ 200 million. The forecast includes significantly higher equipment spending for the ramp of Intel’s next-generation 45nm process technology that will be more than offset by savings in a variety of areas.

Intel today announced fourth-quarter revenue of $ 9.7 billion, operating
income of $ 1.5 billion, net income of $ 1.5 billion and earnings per share (EPS)
of 26 cents. “Intel’s product and technology leadership yielded a strong fourth
quarter with higher selling prices and record unit shipments in the fastest
growing segments of the market,” said Intel President and CEO Paul Otellini.
Intel ended 2006 with a workforce of 94,100 people, lower than 102,500 in the
second quarter of 2006 and slightly below the target of 95,000 people. The
company is on track to generate spending and manufacturing cost savings of
approximately $ 2 billion in 2007 exclusive of restructuring costs.

Key Product Trends (Sequential)

• Total microprocessor units set a record. The ASP was higher, driven primarily
by a mix shift to leading-edge processors in all segments along with growth in
mobile as a percentage of the PC microprocessor mix.
• Chipset units were flat.
• Motherboard units were lower.
• Flash memory units set a record.

Recent Events

• Intel completed the development of its next-generation 45nm process technology
which is scheduled for production in the second half of 2007, ramping to three
300mm factories in 2008. Intel also produced samples of Penryn, the company’s
first 45nm processor, and booted the Windows* Vista*, Mac OS X*, Windows* XP and
Linux operating systems using first silicon.
• In the fourth quarter, new records were set for total microprocessor unit
sales as well as server, mobile and flash unit sales. Server and mobile
microprocessor revenue also exceeded previous records.
• The company shipped more than 70 million 65nm microprocessors during 2006 and
ramped dual-core technology to greater than 50 percent of fourth-quarter
shipments.
• Intel launched the industry’s first quad-core microprocessors for volume
servers and PCs, further extending the performance records established by the
Intel® Core™

Capital spending: $ 5.5 billion plus or minus $ 200 million. The forecast includes
significantly higher equipment spending for the ramp of Intel’s next-generation
45nm process technology that will be more than offset by savings in a variety of
areas.