Intel Reports Fourth-Quarter and Full-Year 2020 Financial Results
Intel reported fourth-quarter and full-year 2020 financial results. The company also announced that its board of directors approved a cash dividend increase of five percent to $1.39 per share on an annual basis. The board declared a quarterly dividend of $0.3475 per share on the company’s common stock, which will be payable on March 1 to shareholders of record on February 7.
“We significantly exceeded our expectations for the quarter, capping off our fifth consecutive record year,” said Bob Swan, Intel CEO. “Demand for the computing performance Intel delivers remains very strong and our focus on growth opportunities is paying off. It has been an honor to lead this wonderful company, and I am proud of what we have achieved as a team. Intel is in a strong strategic and financial position as we make this leadership transition and take Intel to the next level.”
The revenue in the fourth quarter was at $20 billion, about 1% lower compared with the same period in 2019. Gross margin was down 2 percentage points to 56,8%, while operating margin fell 4,2 points to 29,5%. Net income decreased 15% to $5,9 billion, while EPS was down 10% to $1,42. The full year 2020 revenue was up 8% at $77,9 billion. Gross margin fell 2,5 points to 56%, while operating margin was down 0,2 points at 30,4%. Net income was down 1% to $20,9 billion, while EPS went up 5% to $4,94.
Fourth-quarter revenue exceeded prior expectations by $2.6 billion driven by record PC-centric revenue with PC unit volumes up 33 percent YoY led by record notebook sales. The company also achieved better-than-expected data-centric results, including record Mobileye revenue. 2020 marked Intel's fifth consecutive year of record revenue. The Client Computing Group, Data Center Group, Non-volatile Memory Solutions Group, and Mobileye all achieved record full-year revenue. In 2020, the company invested $13.6 billion in research and development and $14.3 billion in capital expenditures while focusing to strengthen its core CPU business, improve execution and accelerate growth.