An indication of a lifting of what has been one of the longest downturns in semiconductor industry history was the 12% sequential growth in the fourth quarter, the highest since 1999. "The fourth quarter was a fitting way to put three tough years behind us," Paul Otellini, president and chief operating officer, said during a conference call.
For the year, Intel reported earnings of $5.64 billion on revenue of $30.14 billion, up from net income of $3.12 billion on revenue of $26.76 billion in 2002. For the fourth quarter, the company reported net income of $2.17 billion on revenue of $8.74 billion, up from of $1.05 billion on revenue of $7.16 billion in the year-ago quarter.
Intel advised that it expects first-quarter revenue of between $7.9 billion and $8.5 billion, compared with revenue of $6.8 billion in the first quarter of 2003. That appeared to concern investors, who sent the stock lower in after-hours trading after it lost 20 cents during Wednesday's session to close at $33.39.
The company said it shipped a record number of microprocessors in 2003, with a slightly higher average selling price because of a greater mix of server processor sales.
"2003 began with a question mark and ended with an exclamation point," said Doug Lusk, assistant treasurer and director of investor relations. The improvement "was more than the rising tide but also a result of execution on our strategy."