Including acquisition-related costs in accordance with generally accepted accounting principles (GAAP), Intel Corp.
posted a net income of $504 million in the fourth quarter, which was up sharply from the third quarter but still substantially below last year’s fourth quarter earnings.
Using GAAP standards, Intel earned 7 cents per share in the fourth quarter, up from 2 cents per share in the third quarter. Fourth quarter earnings per share in 2000, however, was 38 cents per share.
Net income excluding acquisition-related costs was $998 million, up 52 percent sequentially from the third quarter and down 62 percent year over year. Fourth-quarter earnings excluding acquisition-related costs were 15 cents per share, up 50 percent from 10 cents per share in the third quarter and down 61 percent from 38 cents per share in the fourth quarter of 2000.
Acquisition-related costs in the fourth quarter consisted of $550 million of amortization of goodwill and other acquisition-related intangibles and costs.
As of the beginning of 2002, Intel is adopting FASB rules 141 and 142 concerning accounting for business combinations and goodwill. The company performed the initial test for impairment of goodwill at the time of adoption and determined that there was no impairment.
The effect of the goodwill non-amortization provisions of FAS 141 and 142 is expected to result in a substantial reduction in the difference between the company’s earnings excluding acquisition-related costs and the company’s earnings on a GAAP basis. Intel expects to continue to report earnings excluding acquisition-related costs for a period of time to provide a consistent basis for financial comparisons.
Revenue for 2001 was $26.5 billion, down 21 percent from $33.7 billion in 2000. Net income excluding acquisition-related costs was $3.6 billion, down 70 percent from $12.1 billion in 2000. Earnings excluding acquisition-related costs were 52 cents per share, down 70 percent from $1.73 in 2000.
Including acquisition-related costs in accordance with GAAP, net income in 2001 was $1.3 billion, down 88 percent from $10.5 billion in 2000. For 2001, earnings per share were 19 cents, down 87 percent from $1.51 in 2000.
Acquisition-related costs in 2001 consisted of $198 million in one-time charges for purchased in-process research and development and $2.3 billion in amortization of goodwill and other acquisition-related intangibles and costs.