Intel(INTC) - 2024 Q4 - Annual Results

Financial Performance - Fourth-quarter revenue was $14.3 billion, down 7$53.1 billion, down 2% year-over-year[6]. - Fourth-quarter gross margin was 39.2%, down 6.5 percentage points from 45.7% in Q4 2023; full-year gross margin was 32.7%, down 7.3 percentage points from 40.0% in 2023[4][7]. - Fourth-quarter net loss attributable to Intel was $(0.1) billion, a decrease of 105$2.7 billion in Q4 2023; full-year net loss was $(18.8) billion[4][7]. - Net revenue for the three months ended December 28, 2024, was$14,260 million, a decrease of 7.4% from $15,406 million for the same period in 2023[24]. - Net loss attributable to Intel for the three months ended December 28, 2024, was$126 million, compared to a net income of $2,669 million in the same period of 2023[24]. - Net income for the twelve months ended December 28, 2024, was a loss of$19,233 million, compared to a profit of $1,675 million for the same period in 2023[28]. - Total net revenue for the twelve months ended December 28, 2024, was$53,101 million, a decrease of 2.1% from $54,228 million in 2023[30]. - GAAP net income attributable to Intel for the twelve months ended December 28, 2024, was a loss of$18,756 million, compared to a profit of $1,689 million for the same period in 2023[40]. - Non-GAAP net income attributable to Intel for the twelve months ended December 28, 2024, was$4,423 million, down from $2,303 million in the previous year[41]. Cash Flow and Assets - The company generated$3.2 billion in cash from operations in Q4 2024 and $8.3 billion for the full year[4][9]. - Cash flows provided by operating activities for the twelve months ended December 28, 2024, were$8,288 million, down from $11,471 million in 2023[28]. - Cash and cash equivalents rose to$8,249 million as of December 28, 2024, from $7,079 million in 2023[26]. - Cash and cash equivalents at the end of the period increased to$8,249 million from $7,079 million, reflecting a net increase of$1,170 million[28]. - Total current assets increased to $47,324 million as of December 28, 2024, from$43,269 million in 2023[26]. Liabilities and Equity - Total liabilities increased to $91,948 million as of December 28, 2024, compared to$81,607 million in 2023[26]. - Total stockholders' equity decreased to $105,032 million as of December 28, 2024, from$109,965 million in 2023[26]. - The company reported a significant increase in accounts payable, which rose to $12,556 million from$8,578 million in 2023[26]. Segment Performance - Intel's Client Computing Group (CCG) revenue was $8.0 billion in Q4 2024, down 9$30.3 billion, up 4%[9]. - The Data Center and AI segment generated revenue of $12,817 million for the twelve months ended December 28, 2024, compared to$12,635 million in 2023, reflecting a growth of 1.4%[30]. - Intel Foundry revenue was $4.5 billion in Q4 2024, down 13$17.5 billion, down 7%[9]. - The Intel Foundry segment reported a revenue of $17,543 million for the twelve months ended December 28, 2024, down from$18,910 million in 2023[30]. - Operating income for the Client Computing Group for the twelve months ended December 28, 2024, was $10,920 million, up 14.8$9,513 million in 2023[30]. Research and Development - Research and development expenses for the twelve months ended December 28, 2024, were $16,546 million, an increase of 3.1$16,046 million in 2023[24]. - Non-GAAP R&D and MG&A expenses for full-year 2025 are projected to be 17.5 billion, down from GAAP R&D and MG&A of 20.0 billion[46]. Future Outlook - Intel forecasts Q1 2025 revenue between $11.7 billion and$12.7 billion, with an expected EPS of $(0.27) and non-GAAP EPS of$0.00[6][14]. - The outlook for Q1 2025 includes a GAAP gross margin percentage of approximately 33.8% and a non-GAAP gross margin percentage of 36.0%[43]. - GAAP additions to property, plant, and equipment for full-year 2025 are projected to be $20.0 billion, with non-GAAP net capital spending expected to be between$8.0 billion and $11.0 billion[46]. Strategic Initiatives - The company is on track to ship over 100 million AI PCs by the end of 2025, collaborating with over 200 ISVs to optimize software on Intel silicon[13]. - Intel signed a definitive agreement with the U.S. Department of Commerce for up to$7.86 billion in funding under the U.S. CHIPS and Science Act, receiving $1.1 billion in Q4 2024[13]. - Process tool installation is underway in Fab 52 in Arizona to support ramping Intel 18A production this year[13]. - The company is focusing on strategic transactions and investments to navigate the complexities of the semiconductor industry and geopolitical tensions[20].