Intel ended 2006 with revenue and income lower than 2005, but with the fourth quarter reflecting an upward trend. 


The semiconductor giant reported revenue for the year of $35,4-billion, down 9% from 2005. However, fourth quarter revenue of $9,7-billion was 11% better than the third quarter although down from the comparable period a year earlier.
For the full year of 2006, operating income was $5,7-billion, compared to $12,1-billion in 2005; net income was R5-billion as against $8,7-billion the year before; and eps (earnings per share) was $0.86 compared to $1.40 in 2005.
During the fourth quarter of 2006, operating income was $1,5-billion (non-GAAP), down 5% from the fourth quarter in 2005 but up 8% over the thrid quarter.
Similarly, net income was $1,7-billion, down 29% from the comparable quarter in 2005 but 12% better than the third quarter 2006.
An eps of 30 cents was lower than the fourth quarter of 2005 by 25%, but higher than the preceding quarter by 11%.
In September, the company annoucend decision and targets resulting from a structure and efficiency analysis and ended 2006 with a workforce of 94 100 people, down from 102 500 in the second quarter and slightly below the target of 95 000.
In addition, Intel is on track to generate spending and manufacturing cost savings of about $2-billion in 2007, exclusive of restructuring costs.
During 2006, total microprocessor units set a record, as did flash memory units. Chipset sales were flat and motherboard units were lower.
In the first quarter of 2007, the company expects revenues of between $8,7-billion and $9,3-billion, with gross margins of about 19%.
For the year as a whole, gross margins are expected to be about 50% and capital spending at about $5,5-billion.
The announcement of Intel's financial results followed hot on the heels of rumours yesterday, published in the Jerusalem newspaper Globes, that the company is set to close its Fab 28 in that city.