News Highlights:

• Flat revenue year-on-year: PC business down, offset by growth in data center, Internet of Things (IoT) and non-volatile memory businesses
• Operating income of $2.6 billion, up 4 percent year-over-year
• Data Center Group revenue of $3.7 billion, up 19 percent year-over-year; Internet of Things Group revenue of $533 million, up 11 percent year-over-year

SANTA CLARA, Calif., April 14, 2015 -- Intel Corporation today reported first-quarter revenue of $12.8 billion, operating income of $2.6 billion, net income of $2.0 billion and EPS of 41 cents. The company generated approximately $4.4 billion in cash from operations, paid dividends of $1.1 billion, and used $750 million to repurchase 21 million shares of stock.

"Year-over-year revenues were flat, with double-digit revenue growth in the data center, IoT and memory businesses offsetting lower than expected demand for business desktop PCs," said Intel CEO Brian Krzanich. "These results reinforce the importance of continuing to execute our growth strategy."

Q1 Key Business Unit Trends

• Client Computing Group revenue of $7.4 billion, down 16 percent sequentially and down 8 percent year-over-year.
• Data Center Group revenue of $3.7 billion, down 10 percent sequentially and up 19 percent year-over-year.
• Internet of Things Group revenue of $533 million, down 10 percent sequentially and up 11 percent year-over-year.
• Software and services operating segments revenue of $534 million, down 4 percent sequentially and down 3 percent year-over-year.

Business Outlook

Intel's Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures, strategic investments and other significant transactions that may be completed after April 14.

Q2 2015

• Revenue: $13.2 billion, plus or minus $500 million.
• Gross margin percentage: 62 percent, plus or minus a couple of percentage points.
• R&D plus MG&A spending: approximately $4.9 billion.
• Restructuring charges: approximately $120 million.
• Amortization of acquisition-related intangibles: approximately $60 million.
• Impact of equity investments and interest and other: approximately $60 million net gain.
• Depreciation: approximately $2.0 billion.
• Tax rate: approximately 20 percent.

Full Year 2015

• Revenue: approximately flat.
• Gross margin percentage: 61 percent, plus or minus a couple of percentage points.
• R&D plus MG&A spending: approximately $19.7 billion, plus or minus $400 million.
• Amortization of acquisition-related intangibles: approximately $250 million.
• Depreciation: $8.0 billion, plus or minus $100 million.
• Tax rate: approximately 25 percent for the third and fourth quarters.
• Full-year capital spending: $8.7 billion, plus or minus $500 million.

For additional information regarding Intel's results and Business Outlook, please see the CFO commentary at: www.intc.com/results.cfm.

Status of Business Outlook

Intel's Business Outlook is posted on intc.com and may be reiterated in public or private meetings with investors and others. The Business Outlook will be effective through the close of business on June 12 unless earlier updated; except that the Business Outlook for amortization of acquisition-related intangibles, impact of equity investments and interest and other, restructuring charges, and tax rate, will be effective only through the close of business on April 21. Intel's Quiet Period will start from the close of business on June 12 until publication of the company's second-quarter earnings release, scheduled for July 15. During the Quiet Period, all of the Business Outlook and other forward-looking statements disclosed in the company’s news releases and filings with the SEC should be considered as historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.

Risk Factors

The above statements and any others in this release that refer to plans and expectations for the second quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will," "should" and their variations identify forward-looking statements. Statements that refer to  or are based on projections, uncertain events or assumptions also identify forward-looking statements. Many factors could affect Intel's actual results, and variances from Intel's current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be important factors that could  cause actual results to differ materially from the company's expectations.

• Demand for Intel's products is highly variable and could differ from expectations due to factors including changes in business and economic conditions; consumer confidence or income levels; the introduction, availability and market acceptance of Intel's products, products used together with Intel products and competitors' products; competitive and pricing pressures, including actions taken by competitors; supply constraints and other disruptions affecting customers; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers.
• Intel's gross margin percentage could vary significantly from expectations based on capacity utilization; variations in inventory valuation, including variations related to the timing of qualifying products for sale; changes in revenue levels; segment product mix; the timing and execution of the manufacturing ramp and associated costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; and product manufacturing quality/yields. Variations in gross margin may also be caused by the timing of Intel product introductions and related expenses, including marketing expenses, and Intel's ability to respond quickly to technological developments and to introduce new products or incorporate new features into existing products, which may result in restructuring and asset impairment charges.
• Intel's results could be affected by adverse economic, social, political and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates. Results may also be affected by the formal or informal imposition by countries of new or revised export and/or import and doing-business regulations, which could be changed without prior notice.
• Intel operates in highly competitive industries and its operations have high costs that are either fixed or difficult to reduce in the short term.
• The amount, timing and execution of Intel's stock repurchase program could be affected by changes in Intel's priorities for the use of cash, such as operational spending, capital spending, acquisitions, and as a result of changes to Intel's cash flows or changes in tax laws.
• Intel's expected tax rate is based on current tax law and current expected income and may be affected by the jurisdictions in which profits are determined to be earned and taxed; changes in the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits with various tax authorities, including payment of interest and penalties; and the ability to realize deferred tax assets.
• Gains or losses from equity securities and interest and other could vary from expectations depending on gains or losses on the sale, exchange, change in the fair value or impairments of debt and equity investments, interest rates, cash balances, and changes in fair value of derivative instruments.
• Product defects or errata (deviations from published specifications) may adversely impact our expenses, revenues and reputation.
• Intel's results could be affected by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust, disclosure and other issues. An unfavorable ruling could include monetary damages or an injunction prohibiting Intel from manufacturing or selling one or more products, precluding particular business practices, impacting Intel's ability to design its products, or requiring other remedies such as compulsory licensing of intellectual property.
• Intel's results may be affected by the timing of closing of acquisitions, divestitures and other significant transactions.