SCIENCE

SANTA CLARA, CA -- Intel Corporation today announced second quarter revenue of $6.3 billion, down 24 percent from the second quarter of 2000 and down 5 percent sequentially. For the second quarter, net income excluding acquisition-related costs(a) was $854 million, down 76 percent from the second quarter of 2000 and down 22 percent sequentially. Second quarter earnings excluding acquisition-related costs were $0.12 per share, a decrease of 76 percent from $0.50 in the second quarter of 2000 and down 25 percent sequentially. During the second quarter, the estimated tax rate for the year, excluding the impact of acquisition-related costs, was revised to 25.7 percent, lower than the previous expectation of 29.8 percent, resulting in an increase to earnings of approximately $0.01 per share. Last year's second quarter results included a gain on investments of $2.1 billion, primarily from the sale of assets in the Intel Capital portfolio, which compares to a $3 million gain in the second quarter of 2001. Including acquisition-related costs in accordance with generally accepted accounting principles, second quarter net income was $196 million, down 94 percent from the second quarter of 2000 and down 60 percent sequentially. Earnings per share were $0.03, down 93 percent from $0.45 in the second quarter of 2000 and down 57 percent sequentially, including an increase of $0.02 per share due to the lower estimated tax rate for the year of 25.7 percent. Acquisition-related costs in the second quarter consisted of $123 million in one-time charges for purchased in-process research and development and $594 million of amortization of goodwill and other acquisition-related intangibles and costs. "Intel's second quarter results met our overall expectations as our microprocessor business performed better than expected, with sequential growth in units, while our communications and flash businesses remained soft," said Craig R. Barrett, president and chief executive officer. "Our investments in R&D and manufacturing allowed us to introduce industry-leading products across all computing segments and ship our first 0.13-micron-based products ahead of schedule. Looking forward, our strong product line-up and cost-efficient manufacturing capabilities provide Intel with a significant competitive advantage." For additional information visit www.intel.com