16 January 2002 Semiconductor giant Intel has announced its fourth quarter and full year results for 2001. In the fourth quarter, revenue weighed in at $7 billion (€7.9bn) and net income at $504 million (€571.9m), or $998 million (€1.1bn) excluding acquisition related costs.

Compared to the same quarter a year earlier, revenues were down by 20% and net income plunged by 77%, but the chip maker still beat analysts’ forecasts.

Intel also said that its gross profit margin – an indicator of future profitability – will remain stable at 51% of revenues, after it dipped in 2001 as PC sales fell. For the current quarter Intel is forecasting revenues of between $6.4 billion and $7 billion.

“While 2001 was difficult for Intel, I can’t imagine changing places with any other company on the planet,” said Intel president and CEO Craig Barrett. “Our 2001 R&D and manufacturing investments position us to grow faster than the industry when the high tech recovery occurs,” he added.

However, Intel is also taking further measures to reduce its capital expenditure from $7.3 billion (€8.3bn) last year to $5.5 billion (€6.2bn) during 2002. This will affect semiconductor equipment makers who have come to rely on Intel’s purchases during the downturn.

For the full year to the end of December 2001, Intel’s revenues were $26.5 billion (€30.1bn), down from $33.7 billion (€38.2bn) in 2000. Net income was $1.3 billion (€1.5bn), down 88% from $10.5 billion (€11.9bn) in 2000.