Intel : Current report filing 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report: January 24, 2019

(Date of earliest event reported)

INTEL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	000-06217	94-1672743
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)
95054-1549
(Zip Code)

2200 Mission College Blvd., Santa Clara, California

(Address of principal executive offices)

[phone]

(Registrant's telephone number, including area code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

• [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

• [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

• [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

• [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02

Results of Operations and Financial Condition.

On January 24, 2019 , Intel Corporation ("Intel") issued a press release announcing the financial results of its fourth quarter and full year ended December 29, 2018 and forward-looking statements relating to its first quarter of 2019 and full year 2019 . A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

The attached press release includes non-GAAP financial measures relating to our operations and forecasted outlook. Certain of these non-GAAP terms will be used in Intel's earnings conference for the fourth quarter of 2018 . In addition, the attached press release includes reconciliations of these non-GAAP measures to GAAP measures, as well as an explanation of how management uses these non-GAAP measures and the reasons why management views these measures as providing useful information for investors. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to these results should be carefully evaluated.

The information in Items 2.02 and 7.01 of this Report and the press release attached hereto as Exhibit 99.1 are furnished and shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.

Item 7.01

Regulation FD Disclosure.

On January 24, 2019, Intel also announced in the attached press release that its Board of Directors had approved an increase in the quarterly cash dividend. The increase was effective beginning with the dividend declared concurrently with the announcement.

Item 9.01

Financial Statements and Exhibits.

(d)Exhibits.

The following exhibit is furnished as part of this Report:

Exhibit Number 99.1

Description

Press Release issued by Intel entitled "Intel Reports Fourth-Quarter and Full Year 2018 Financial Results" dated January 24, 2019.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:January 24, 2019

INTEL CORPORATION (Registrant)

By:

/s/ ROBERT H. SWAN Robert H. Swan

Interim Chief Executive Officer;

Executive Vice President and Chief Financial Officer

Exhibit 99.1

Intel Corporation

2200 Mission College Blvd. Santa Clara, CA 95054-1549

News Release

Intel Reports Fourth -Quarter and Full-Year 2018 Financial Results

Announces Five Percent Increase to Quarterly Cash Dividend

News Summary:

• • Fourth-quarter revenue was $18.7 billion , up 9 percent year-over-year (YoY); and full-year revenue set an all-time record of $70.8 billion , up 13 percent YoY.

• • Delivered outstanding fourth-quarter earnings per share of $1.12 ( $1.28 on a non-GAAP basis); achieved record full-year operating income, net income and EPS.

• • In 2018 , Intel generated a record $29.4 billion cash from operations, generated $14.3 billion of free cash flow and returned nearly $16.3 billion to shareholders.

• • Expecting record 2019 revenue of approximately $71.5 billion and first-quarter revenue of approximately $16 billion.

SANTA CLARA, Calif., January 24, 2019 -- Intel Corporation today reported fourth -quarter and full-year 2018 financial results. The company also announced that its board of directors has approved a five percent increase in its cash dividend to $1.26 per-share on an annual basis.The board declared a quarterly dividend of $0.315 per-share on the company's common stock, which will be payable on March 1 to shareholders of record on February 7.

"2018 was a truly remarkable year for Intel with record revenue in every business segment and record profits as we transform the company to pursue our biggest market opportunity ever," said Bob Swan, Intel CFO and Interim CEO. "In the fourth quarter, we grew revenue, expanded earnings and previewed new 10nm-based products that position Intel to compete and win going forward. Looking ahead, we are forecasting another record year and raising the dividend based on our view that the explosive growth of data will drive continued demand for Intel products."

Q4 2018 Financial Highlights

GAAP	Non-GAAP
Q4 2018	Q4 2017	vs. Q4 2017	Q4 2018	Q4 2017	vs. Q4 2017
Revenue ($B)	$18.7	$17.1	up 9%	$18.7^	$17.1^	up 9%
Gross Margin	60.2%	63.2%	down 3 pts	61.7%	64.9%	down 3.2 pts
R&D and MG&A ($B)	$5.0	$5.1	down 3%	$5.0^	$5.1^	down 3%
Operating Income ($B)	$6.2	$5.4	up 15%	$6.6	$6.0	up 10%
Tax Rate	7.8%	111.4%	n/m 1	8.8%	21.2%	down 12.4 pts
Net Income (Loss) ($B)	$5.2	$(0.7)	n/m 1	$5.9	$5.2	up 14%
due to tax impact
Earnings Per Share	$1.12	$(0.15)	n/m 1	$1.28	$1.08	up 18%
due to tax impact

In the fourth quarter, the company generated approximately $6.9 billion in cash from operations, paid dividends of $1.4 billion and used $2.3 billion to repurchase 51 million shares of stock.

^ No adjustment on a non-GAAP basis

1 Not meaningful due to Q4'17 tax impacts

* Data-centric businesses include DCG, IOTG, NSG, PSG and All Other, excluding McAfee

Exhibit 99.1
Full-Year 2018 Financial Highlights
GAAP	Non-GAAP
2018	2017	vs. 2017	2018	2017	vs. 2017
Revenue ($B)	$70.8	$62.8	up 13%	$70.8^	$62.8^	up 13%
Gross Margin	61.7%	62.3%	down 0.6 pts	63.3%	63.8%	down 0.5 pts
R&D and MG&A ($B)	$20.3	$20.5	down 1%	$20.3^	$20.4	flat 0%
Operating Income ($B)	$23.3	$18.1	up 29%	$24.5	$19.7	up 25%
Tax Rate	9.7%	52.8%	n/m 1	11.0%	22.5%	down 11.5 pts
Net Income ($B)	$21.1	$9.6	n/m 1	$21.5	$16.8	up 28%
Earnings Per Share	$4.48	$1.99	n/m 1	$4.58	$3.46	up 32%

For the full year, the company generated a record $29.4 billion cash from operations, paid dividends of $5.5 billion and used $10.7 billion to repurchase 217 million shares of stock.

Business Unit Summary

Key Business Unit Revenue and Trends

Q4 2018	vs. Q4 2017	2018	vs. 2017
PC-centric	CCG	$9.8 billion	up 10%	$37.0 billion	up 9%
DCG	$6.1 billion	up 9%	$23.0 billion	up 21%
IOTG	$816 million	down 7%	$3.5 billion	up 9%
Data-centric	NSG	$1.1 billion	up 25%	$4.3 billion	up 22%
PSG	$612 million	up 8%	$2.1 billion	up 12%
up 9%*	up 20%*

In the fourth quarter, Intel achieved revenue growth in nearly every business segment, and in 2018 every segment of the business set new annual all-time revenue records.

The PC-centric business (CCG) was up 10 percent in the fourth quarter due to continued strong demand for Intel's higher performance products and strength in commercial and gaming. CCG expanded its product portfolio for 2019 with the recent launch of new 9th Gen Intel ® Core™ processors and unveiled "Ice Lake" the upcoming, 10nm-based PC processor, which is expected to be in OEM systems on shelves for holiday, 2019.

Collectively, Intel's data-centric businesses grew 9 percent YoY in the quarter and 20 percent YoY in 2018. In the fourth quarter, DCG achieved 24 percent cloud segment growth and 12 percent communications service provider segment growth while enterprise revenue declined 5 percent. Intel recently announced that the new "Cascade Lake" family of high performance Intel ® Xeon ® processors with advanced AI and memory capabilities is now shipping.

Fourth-quarter Internet of Things Group (IOTG) revenue declined 7 percent YoY. However, excluding Wind River, which Intel divested in the second quarter, fourth-quarter IOTG revenue was up 4 percent YoY despite supply tightness. Record quarterly revenue in Intel's memory business (NSG) was up 25 percent YoY. Intel's Programmable Solutions Group (PSG) also achieved record quarterly revenue, up 8 percent YoY driven by strength in the data center and communications market segments.

Mobileye fourth-quarter revenue of $183 million was up 43 percent YoY as customer momentum continued. In 2018, Mobileye achieved 28 new design wins and 78 vehicle model launches.

A dditional information regarding Intel's results can be found in the Q4'18 Earnings Presentation available at:www.intc.com/results.cfm .

^ No adjustment on a non-GAAP basis

1 Not meaningful due to Q4'17 tax impacts

* Data-centric businesses include DCG, IOTG, NSG, PSG and All Other, excluding McAfee