By Telecom Lead Team: Intel Corp
will sharply increase its capital expenditure budget for 2012 in order to catch
up in tablets and smartphones and to extend its lead in corporate data centers.
Rushing to speed up its development
of competitive chips for smartphones and tablets, Intel said it is boosting
capital spending in 2012 to $12.5 billion, plus or minus $400 million. Last
year its capital expenditures were $10.7 billion.
Chief Financial Officer Stacy Smith
said it would pay off in the long run to make more investments now in
cutting-edge facilities to develop and make chips for smartphones and a new
category of super-thin laptops dubbed Ultrabooks, according to a report in
Reuters.
Intel Corporation reported full-year
revenue of $54 billion, operating income of $17.5 billion and net income of
$12.9 billion. The company generated approximately $21 billion in cash from
operations.
For the fourth quarter, Intel posted
revenue of $13.9 billion, operating income of $4.6 billion and net income of
$3.4 billion. The company generated approximately $6.6 billion in cash from
operations.
Intel announced that McAfee and
Intel Mobile Communications contributed revenue of $3.6 billion in 2011.
PC Client Group had revenue of $35.4
billion, up 17 percent from 2010.
Data Center Group had revenue of
$10.1 billion, up 17 percent from 2010.
Other Intel architecture group had
revenue of $5.0 billion, up 64 percent from 2010.
Intel Atom microprocessor and
chipset revenue was $1.2 billion, down 25 percent from 2010.
2011 was an exceptional year for
Intel. With outstanding execution the company performed superbly, growing
revenue by more than $10 billion and eclipsing all annual revenue and earnings
records. With a tremendous product and technology pipeline for 2012, we’re
excited about the global growth opportunities presented by Ultrabook systems,
the data center, security and the introduction of Intel-powered smartphones and
tablets,” said Paul Otellini, Intel president and CEO.