Intel profit doubles, Sees FY03 capex down

Jan. 15, 2003 – Santa Clara, CA – Intel Corp. has posted 4Q02 earnings that more than doubled as revenues outpaced expectations on sales of higher-priced chips. But the chipmaker plans to cut capital expenses for 2003 and said 1Q03 revenues would be lower, reflecting a typical seasonal slowdown.

“We’re trying to manage the company very cautiously, keeping spending flat to down,” Andy Bryant, CFO.

Net income for 4Q02 rose to $1 billion, or $0.16/share, topping the most bullish analyst forecast and up from $504 million, or $0.07, a year earlier, reported Reuters.

Revenue rose to $7.2 billion up from $7 billion a year earlier and above the raised forecast for the quarter that Intel had offered in December.

Shares of Intel rose to $17.94 in after-hours trade on Instinet, up from a closing price of $17.79.

4Q revenue was at the high end of the normal seasonal 4Q range, Bryant told Reuters. “Orders continued to come in through the holiday season.”

The ASP for Intel’s microprocessors was higher due to increased sales of pricier chips for laptops and server computers compared to desktops. The company also saw record shipments of microprocessors and motherboard. Intel gained market share in most areas, executives said.

Sales reached an all-time record in Asia Pacific, with particular strength in China and Taiwan, according to Intel. Sales were also strong in Europe and Japan, it said.

Intel said it would direct more than 90% of its 2003 budget for chip fabrication. Specifically, Intel is moving to 300mm wafers from 200mm wafers. It is also shrinking the distance between transistors on a chip from 130nm to 90nm.


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