Intel Corporation reported consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the fourth quarter, Intel posted revenue of $16.4 billion, operating income of $4.5 billion, net income of $3.6 billion and EPS of 73 cents. Intel reported non-GAAP operating income of $4.9 billion, net income of $3.9 billion, and EPS of 79 cents. The company generated approximately $8.2 billion in cash from operations, paid dividends of $1.2 billion, and used $533 million to repurchase 15 million shares of stock. The company reported operating income of $4,526,000, income before income taxes of $4,440,000 operating income of $4,299,000, income before income taxes of $4,303,000 a year ago. Fourth quarter revenue of $16.4 billion was up 10% on year-on-year basis and was up $0.7 billion from expectations. Non-GAAP operating income for the fourth quarter was $4.9 billion, up 11% on a year-on-year basis. Non-GAAP net income for the fourth quarter was $3.9 billion, up 4% on a year-on-year basis. Non-GAAP earnings per share was $0.79, up 3 cents on a year-on-year basis.

The company reported full-year revenue of $59.4 billion, operating income of $12.9 billion, net income of $10.3 billion and EPS of $2.12. Intel reported non-GAAP revenue of $59.5 billion, operating income of $16.5 billion, net income of $13.2 billion, and EPS of $2.72. The company generated approximately $21.8 billion in cash from operations, paid dividends of $4.9 billion and used $2.6 billion to repurchase 81 million shares of stock. The company reported operating income of $12,874,000, income before income taxes of $12,936,000 operating income of $14,002,000, income before income taxes of $14,212,000 a year ago. For the full year, non-GAAP revenue of $59.5 billion was up 7% on year-on-year basis. Non-GAAP operating income for the year was $16.5 billion, up 11% on a year-on-year basis. Non-GAAP net income was $13.2 billion, up 9% on a year-on-year basis. Non-GAAP earnings per share was $2.72, up 23 cents on a year-on-year basis.

For the fiscal 2017, revenue is expected to be $14.8 billion, plus or minus $500 million in the first quarter. GAAP gross margin in the first quarter is expected to be 62%, plus or minus a couple of points, flat to the fourth quarter. Spending for R&D and MG&A in the first quarter is expected to be approximately $5.3 billion. This is down 1% on a year-on-year basis. Depreciation is forecast to be approximately $1.6 billion. Amortization of acquisition-related intangibles included in operating expenses is expected to be approximately $40 million, all of which is excluded on a non-GAAP basis. The tax rate is expected to be approximately 22%. GAAP EPS is expected to be $0.56 plus or minus 5 cents. Non-GAAP EPS is expected to be $0.65 plus or minus 5 cents. This is up 20% on a year-on-year basis.

Turning to the full year 2017, the company expects revenue to be roughly flat. Revenue is expected to grow in the low single digits after excluding the Intel Security Group from both years. GAAP gross margin for the year is expected to be 62%, plus or minus a couple points, up 1.1 points from 2016. Non-GAAP gross margin for the year is expected to be 63%, plus or minus a couple points, flat to 2016. Spending for R&D and MG&A for the year is expected to be approximately $20.5 billion plus or minus $400 million. Depreciation is forecast to be approximately $7.0B plus or minus $200 million, up $0.7 billion from 2016. Amortization of acquisition-related intangibles included in operating expense is forecast to be approximately $150 million, down from 2016. The tax rate is expected to be 26%, up from 2016. Non-GAAP tax rate is expected to be 22%. GAAP EPS for 2017 is expected to be $2.53, plus or minus 5%. Non-GAAP EPS for 2017 is expected to be $2.80, plus or minus 5%. Capital spending for 2017 is expected to be $12.0 billion plus or minus $500 million, up $2.4 billion, from 2016, primarily driven by Non-Volatile Memory Solutions Group.