Intel was
on a roll during latter half of 2007. During Q3 2007, Intel reported a 15
percent increase in revenue to $10.1 billion USD, a 64 percent increase in
operating income to $2.2 billion USD and a 43 percent increase in net income to
$1.9 billion USD.
Intel mirrored those gains again with some pretty
competitive numbers during Q4 2007. Revenue, operating income and net income
increased to $10.7 billion USD, $3 billion USD and $2.3 billion USD
respectively. Intel's Q4 2007 earnings represented a 10.5 percent, 105 percent
and 51 percent increase respectively over its Q4 2006 results.
"2007 was a breakthrough year for innovation at Intel.
We realized the benefits of our investments in new products and our efforts to
drive efficiencies," said Intel president and CEO Paul Otellini. "Our
customers embraced the Intel Core microarchitecture, extending our competitive
leadership and driving a significant gain in operating results. We enter 2008
with the best combination of products, silicon technology and manufacturing
leadership in our history."
Despite Intel's gains from Q4 2007, investors still hammered
the company for missing analysts' estimates for the company. Intel's revenues
of $10.7 billion USD and earnings per share (EPS) of 38 cents were below
analysts' estimates of $10.84 billion USD and 40 cents.
Investors also weren't encouraged by Intel's Q1 2008
forecast. Intel projects that revenue for the quarter will come in at between
$9.4 billion USD and $10 billion USD with gross margins coming in at 56 percent
plus or minus 2 points.
Intel's stock tumbled 12 percent following the Q4 earnings
report.
Intel had its fair share of news in the past few weeks. The
company recently launched
16 new processors, severed
its ties with the OLPC project and came under fire from the European Union
for antitrust
allegations.