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Exhibit
Exhibit 99.1

Intel Corporation
2200 Mission College Blvd.
Santa Clara, CA 95054-1549
earningsintellogobwa09.jpg News Release


Intel Reports First-Quarter 2019 Financial Results


News Summary:

•
First-quarter revenue was $16.1 billion, flat year-over-year (YoY); data-centric revenue declined 5 percent and PC-centric revenue grew 4 percent.
•
First-quarter GAAP earnings-per-share (EPS) of $0.87 declined 6 percent YoY; non-GAAP EPS of $0.89 was up 2 percent.
•
Expecting second-quarter revenue of $15.6 billion; second-quarter GAAP EPS of $0.83 and non-GAAP EPS of $0.89.
•
Expecting full-year revenue of $69.0 billion, full-year GAAP EPS of $4.14 and non-GAAP EPS of $4.35; down from January guidance.


SANTA CLARA, Calif., April 25, 2019 -- Intel Corporation today reported first-quarter 2019 financial results.

"Results for the first quarter were slightly higher than our January expectations. We shipped a strong mix of high-performance products and continued spending discipline while ramping 10nm and managing a challenging NAND pricing environment. Looking ahead, we're taking a more cautious view of the year, although we expect market conditions to improve in the second half," said Bob Swan, Intel CEO. "Our team is focused on expanding our market opportunity, accelerating our innovation and improving execution while evolving our culture. We aim to capitalize on key technology inflections that set us up to play a larger role in our customers’ success, while improving returns for our owners."

 
Q1 2019 Financial Highlights
 
GAAP
 
Non-GAAP
 
Q1 2019
Q1 2018
vs. Q1 2018
 
Q1 2019
Q1 2018
vs. Q1 2018
Revenue ($B)
$16.1
$16.1
flat
 
$16.1^
$16.1^
flat
Gross Margin
56.6%
60.6%
down 4 pts
 
58.3%
62.3%
down 4 pts
R&D and MG&A ($B)
$4.9
$5.2
down 7%
 
$4.9^
$5.2^
down 7%
Operating Income ($B)
$4.2
$4.5
down 7%
 
$4.5
$4.8
down 6%
Tax Rate
12.6%
11.1%
up 1.5 pts
 
12.5%
11.7%
up 0.7 pt
Net Income ($B)
$4.0
$4.5
down 11%
 
$4.0
$4.2
down 3%
Earnings Per Share
$0.87
$0.93
down 6%
 
$0.89
$0.87
up 2%

In the first quarter, the company generated approximately $5.0 billion in cash from operations, paid dividends of $1.4 billion and used $2.5 billion to repurchase 49 million shares of stock.

* Data-centric businesses include DCG, IOTG, Mobileye, NSG, PSG and All Other
^ No adjustment on a non-GAAP basis



Intel/Page 2

Business Unit Summary

 
Key Business Unit Revenue and Trends
 
 
Q1 2019
vs. Q1 2018
PC-centric
CCG
$8.6 billion
up
4%
Data-centric
DCG
$4.9 billion
down
6%
IOTG
$910 million
up
8%
Mobileye
$209 million
up
38%
NSG
$915 million
down
12%
PSG
$486 million
down
2%
 
 
down
5%*

In the first quarter, Intel achieved 4 percent growth in the PC-centric business while data-centric revenue declined 5 percent.
The PC-centric business (CCG) was up 4 percent in the first quarter due to a strong mix of Intel's higher performance products and strength in gaming, large commercial and modem. Intel's first high-volume 10nm processor, code-named Ice Lake, remains on track to be in volume systems on retail shelves for the 2019 holiday selling season.
Collectively, Intel's data-centric businesses declined 5 percent YoY in the first quarter. In the Data Center Group (DCG), the cloud segment grew 5 percent while the communications service provider segment declined 4 percent and enterprise and government revenue declined 21 percent. First-quarter Internet of Things Group (IOTG) revenue grew 8 percent YoY (19 percent excluding Wind River1), and Mobileye achieved record first-quarter revenue of $209 million, up 38 percent YoY as customer momentum continued. Intel's memory business (NSG) was down 12 percent YoY in a challenging pricing environment. Intel's Programmable Solutions Group (PSG) revenue was down 2 percent YoY in the first quarter.
The first quarter marked the introduction of a broad, new portfolio of data-centric products from Intel featuring the 2nd-Generation Intel® Xeon® Scalable® processor family with integrated Intel® Deep Learning Boost (Intel® DL Boost) for AI deep learning inferencing acceleration and support for Intel® Optane™ DC persistent memory, the revolutionary technology that brings affordable, high-capacity persistent memory to Intel’s data-centric computing portfolio. Intel also introduced more than 50 workload-optimized Intel® Xeon® processors, a 56-core, 12 memory channel Intel® Xeon® Platinum 9200 processor, and the new Intel® Agilex™ line of 10nm-based FPGAs.
Additional information regarding Intel’s results can be found in the Q1'19 Earnings Presentation available at: www.intc.com/results.cfm.

^ No adjustment on a non-GAAP basis
* Data-centric businesses include DCG, IOTG, Mobileye, NSG, PSG and All Other
1 IOTG growth rate excludes Q1'18 $74M for Wind River revenue
Intel/Page 3

Business Outlook
    
Intel's guidance for the second-quarter and full-year 2019 includes both GAAP and non-GAAP estimates. Reconciliations between these GAAP and non-GAAP financial measures are included below.
Q2 2019
GAAP
 
Non-GAAP
 
Approximately
 
Approximately
Revenue
$15.6 billion
 
$15.6 billion^
Operating margin
27%
 
29%
Tax rate
11.5%
 
11.5%^
Earnings per share
$0.83
 
$0.89
Full-Year 2019
GAAP
 
Non-GAAP
 
Approximately
 
Approximately
Revenue
$69.0 billion
 
$69.0 billion^
Operating margin
30%
 
32%
Tax rate
12.0%
 
12.0%^
Earnings per share
$4.14
 
$4.35
Full-year capital spending
$15.5 billion
 
$15.5 billion^
Free cash flow
N/A
 
$15.0 billion

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 25, 2019. Actual results may differ materially from Intel’s Business Outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below.

Earnings Webcast

Intel will hold a public webcast at 2:00 p.m. PDT today to discuss the results for its first quarter of 2019. The live public webcast can be accessed on Intel's Investor Relations website at www.intc.com/results.cfm. The Q1'19 Earnings Presentation, webcast replay, and audio download will also be available on the site.

Intel plans to report its earnings for the second quarter of 2019 on July 25, 2019 promptly after close of market, and related materials will be available at www.intc.com/results.cfm. A public webcast of Intel’s earnings conference call will follow at 2:00 p.m. PDT at www.intc.com.




^ No adjustment on a non-GAAP basis
Intel/Page 4

Forward-Looking Statements

Intel’s Business Outlook and other statements in this release that refer to future plans and expectations are forward-looking statements that involve a number of risks and uncertainties. Words such as "anticipates," "expects," "intends," "goals," "plans," "believes," "seeks," "estimates," "continues," "may," "will," "would," "should," "could," and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements that refer to or are based on estimates, forecasts, projections, uncertain events or assumptions, including statements relating to total addressable market (TAM) or market opportunity, future products and the expected availability and benefits of such products, and anticipated trends in our businesses or the markets relevant to them, also identify forward-looking statements. All forward-looking statements included in this release are based on management's expectations as of the date of this release and, except as required by law, Intel disclaims any obligation to update these forward-looking statements to reflect future events or circumstances. Forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Intel presently considers the following to be among the 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; customer confidence or income levels, and the levels of customer capital spending; 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; changes in customer needs and emerging technology trends; and changes in the level of inventory at customers.
•
Intel's results 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 results may also be caused by the timing of Intel product introductions and related expenses, including marketing programs, and Intel's ability to respond quickly to technological developments and to introduce new products or incorporate new features into existing products, as well as decisions to exit product lines or businesses, 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 recession or slowing growth, military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns, fluctuations in currency exchange rates, sanctions and tariffs, and continuing uncertainty regarding social, political, immigration, and tax and trade policies in the U.S. and abroad, including the United Kingdom's vote to withdraw from the European Union. 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. In addition, in connection with our strategic transformation to a data-centric company, we have entered new areas and introduced adjacent products, where we face new sources of competition and uncertain market demand or acceptance of our products, and these new areas and products may not grow as projected.
•
The amount, timing and execution of Intel's stock repurchase program may fluctuate based on Intel's priorities for the use of cash for other purposes—such as investing in our business, including operational and capital spending, acquisitions, and returning cash to our stockholders as dividend payments—and because of changes in cash flows, tax laws, or the market price of our common stock.
•
Intel's expected tax rate is based on current tax law, including current interpretations of the Tax Cuts and Jobs Act of 2017 (”TCJA”), and current expected income and may be affected by evolving interpretations of TCJA; changes in the volume and mix of profits earned across jurisdictions with varying tax rates; 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.


Intel/Page 5

•
Intel's results could be affected by gains or losses from equity securities and interest and other, which could vary depending on gains or losses on the change in fair value, sale, exchange, or impairments of equity and debt 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.
•
We or third parties regularly identify security vulnerabilities with respect to our processors and other products as well as the operating systems and workloads running on them. Security vulnerabilities and any limitations of, or adverse effects resulting from, mitigation techniques can adversely affect our results of operations, financial condition, customer relationships, prospects, and reputation in a number of ways, any of which may be material, including incurring significant costs related to developing and deploying updates and mitigations, writing down inventory value, a reduction in the competitiveness of our products, defending against product claims and litigation, responding to regulatory inquiries or actions, paying damages, addressing customer satisfaction considerations, or taking other remedial steps with respect to third parties. Adverse publicity about security vulnerabilities or mitigations could damage our reputation with customers or users and reduce demand for our products and services. A detailed description of these risks is set forth in the "Risk Factors" section of our most recent reports on Forms 10-K and 10-Q.
•
Intel's results could be affected by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust, commercial, 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.
Detailed information regarding these and other factors that could affect Intel's business and results is included in Intel's SEC filings, including the company's most recent reports on Forms 10-K and 10-Q, particularly the "Risk Factors" sections of those reports. Copies of these filings may be obtained by visiting our Investor Relations website at www.intc.com or the SEC's website at www.sec.gov.


About Intel

Intel (NASDAQ: INTC), a leader in the semiconductor industry, is shaping the data-centric future with computing and communications technology that is the foundation of the world’s innovations. The company’s engineering expertise is helping address the world’s greatest challenges as well as helping secure, power and connect billions of devices and the infrastructure of the smart, connected world - from the cloud to the network to the edge and everything in between. Find more information about Intel at newsroom.intel.com and intel.com.


Intel, the Intel logo, Intel Agilex, Intel Optane, Thunderbolt, and Xeon are trademarks of Intel Corporation or its subsidiaries in the U.S. and/or other countries.


Intel/Page 6

INTEL CORPORATION
CONSOLIDATED SUMMARY STATEMENT OF INCOME DATA

 
 
Three Months Ended
(In Millions, Except Per Share Amounts; Unaudited)
 
Mar 30,
2019
 
Mar 31,
2018
NET REVENUE
 
$
16,061

 
$
16,066

Cost of sales
 
6,972

 
6,335

GROSS MARGIN
 
9,089

 
9,731

Research and development (R&D)
 
3,332

 
3,311

Marketing, general and administrative (MG&A)
 
1,533

 
1,900

R&D AND MG&A
 
4,865

 
5,211

Restructuring and other charges
 
—

 
—

Amortization of acquisition-related intangibles
 
50

 
50

OPERATING EXPENSES
 
4,915

 
5,261

OPERATING INCOME
 
4,174

 
4,470

Gains (losses) on equity investments, net
 
434

 
643

Interest and other, net
 
(61
)
 
(102
)
INCOME BEFORE TAXES
 
4,547

 
5,011

Provision for taxes
 
573

 
557

NET INCOME
 
$
3,974

 
$
4,454

 
 
 
 
 
EARNINGS PER SHARE - BASIC
 
$
0.88

 
$
0.95

EARNINGS PER SHARE - DILUTED
 
$
0.87

 
$
0.93

 
 
 
 
 
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:
 
 
 
 
BASIC
 
4,492

 
4,674

DILUTED
 
4,564

 
4,790






















Intel/Page 7

INTEL CORPORATION
CONSOLIDATED SUMMARY BALANCE SHEET DATA

(In Millions)
 
Mar 30,
2019
 
Dec 29,
2018
CURRENT ASSETS
 
 
 
 
Cash and cash equivalents
 
$
3,154

 
$
3,019

Short-term investments
 
2,698

 
2,788

Trading assets
 
6,181

 
5,843

Total cash investments
 
12,033

 
11,650

Accounts receivable
 
6,957

 
6,722

Inventories
 
 
 
 
Raw materials
 
789

 
813

Work in process
 
4,758

 
4,511

Finished goods
 
2,218

 
1,929

 
 
7,765

 
7,253

Other current assets
 
2,305

 
3,162

TOTAL CURRENT ASSETS
 
29,060

 
28,787

 
 
 
 
 
Property, plant and equipment, net
 
50,040

 
48,976

Equity investments
 
5,254

 
6,042

Other long-term investments
 
3,465

 
3,388

Goodwill
 
24,521

 
24,513

Identified intangible assets, net
 
11,457

 
11,836

Other long-term assets
 
5,661

 
4,421

TOTAL ASSETS
 
$
129,458

 
$
127,963

 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
Short-term debt
 
$
2,750

 
$
1,261

Accounts payable
 
4,059

 
3,824

Accrued compensation and benefits
 
1,984

 
3,622

Other accrued liabilities
 
10,118

 
7,919

TOTAL CURRENT LIABILITIES
 
18,911

 
16,626

 
 
 
 
 
Debt
 
25,737

 
25,098

Contract liabilities
 
1,775

 
2,049

Income taxes payable, non-current
 
4,781

 
4,897

Deferred income taxes
 
1,521

 
1,665

Other long-term liabilities
 
2,797

 
2,646

 
 
 
 
 
TEMPORARY EQUITY
 
275

 
419

 
 
 
 
 
Stockholders' equity
 
 
 
 
Preferred stock
 
—

 
—

Common stock and capital in excess of par value
 
25,346

 
25,365

Accumulated other comprehensive income (loss)
 
(813
)
 
(974
)
Retained earnings
 
49,128

 
50,172

TOTAL STOCKHOLDERS' EQUITY
 
73,661

 
74,563

TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY
 
$
129,458

 
$
127,963




Intel/Page 8

INTEL CORPORATION
SUPPLEMENTAL FINANCIAL AND OTHER INFORMATION

 
 
Three Months Ended
(In Millions)
 
Mar 30,
2019
 
Mar 31,
2018
SELECTED CASH FLOW INFORMATION:
 
 
 
 
Operating activities:
 
 
 
 
Net cash provided by operating activities
 
$
4,959

 
$
6,284

Depreciation
 
$
2,229

 
$
1,806

Share-based compensation
 
$
389

 
$
433

Amortization of intangibles
 
$
396

 
$
390

Investing activities:
 
 
 
 
Additions to property, plant and equipment
 
$
(3,321
)
 
$
(2,910
)
Financing activities:
 
 
 
 
Repayment of debt and debt conversion
 
$
(861
)
 
$
(327
)
Repurchase of common stock
 
$
(2,530
)
 
$
(1,914
)
Payment of dividends to stockholders
 
$
(1,414
)
 
$
(1,400
)
 
 
 
 
 
EARNINGS PER SHARE OF COMMON STOCK INFORMATION:
 
 
 
 
Weighted average shares of common stock outstanding – basic
 
4,492

 
4,674

Dilutive effect of employee equity incentive plans
 
53

 
65

Dilutive effect of convertible debt
 
19

 
51

Weighted average shares of common stock outstanding – diluted
 
4,564

 
4,790

 
 
 
 
 
STOCK BUYBACK:
 
 
 
 
Shares repurchased
 
49

 
41

Cumulative shares repurchased (in billions)
 
5.2

 
5.0

Remaining dollars authorized for buyback (in billions)
 
$
14.9

 
$
11.3

 
 
 
 
 
OTHER INFORMATION:
 
 
 
 
Employees (in thousands)
 
108.8

 
103.7



Intel/Page 9

INTEL CORPORATION
SUPPLEMENTAL OPERATING SEGMENT RESULTS
 
 
Three Months Ended
(In Millions)
 
Mar 30,
2019
 
Mar 31,
2018
Net Revenue
 
 
 
 
Client Computing Group
 
 
 
 
Platform
 
$
7,824

 
$
7,615

Adjacency
 
762

 
605

 
 
8,586

 
8,220

Data Center Group
 
 
 
 
Platform
 
4,482

 
4,824

Adjacency
 
420

 
410

 
 
4,902

 
5,234

Internet of Things Group
 
 
 
 
Platform
 
825

 
719

Adjacency
 
85

 
121

 
 
910

 
840

Mobileye
 
209

 
151

Non-Volatile Memory Solutions Group
 
915

 
1,040

Programmable Solutions Group
 
486

 
498

All Other
 
53

 
83

TOTAL NET REVENUE
 
$
16,061

 
$
16,066

Operating income (loss)
 
 
 
 
Client Computing Group
 
$
3,072

 
$
2,791

Data Center Group
 
1,841

 
2,602

Internet of Things Group
 
251

 
227

Mobileye
 
68

 
10

Non-Volatile Memory Solutions Group
 
(297
)
 
(81
)
Programmable Solutions Group
 
89

 
97

All Other
 
(850
)
 
(1,176
)
TOTAL OPERATING INCOME
 
$
4,174

 
$
4,470

Revenue for our reportable and non-reportable operating segments is primarily related to the following product lines:
•
CCG includes platforms designed for end-user form factors, focusing on higher growth segments of 2-in-1, thin-and-light, commercial and gaming, and growing adjacencies such as WiFi and Thunderbolt™.
•
DCG includes workload-optimized platforms and related products designed for cloud, enterprise, and communication infrastructure market segments.
•
IOTG includes high-performance compute solutions for targeted verticals and embedded applications in market segments such as retail, manufacturing, health care, energy, automotive, and government.
•
Mobileye includes computer vision and machine learning-based sensing, data analysis, localization mapping and driving policy technology for advanced driver assistance systems (ADAS) and autonomous driving.
•
NSG includes Intel® Optane™ technology and 3D NAND flash memory, primarily used in solid-state drives (SSDs).
•
PSG includes programmable semiconductors, primarily field-programmable gate arrays (FPGAs), and related products for a broad range of markets, such as communications, data center, industrial, and military.
We have sales and marketing, manufacturing, engineering, finance, and administration groups. Expenses for these groups are generally allocated to the operating segments and the expenses are included in the following operating results.
All other category includes revenue, expenses, and charges such as:
•
results of operations from non-reportable segments not otherwise presented;
•
historical results of operations from divested businesses;
•
results of operations of start-up businesses that support our initiatives, including our foundry business;
•
amounts included within restructuring and other charges;
•
a portion of employee benefits, compensation, and other expenses not allocated to the operating segments; and
•
acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and goodwill.
A substantial majority of our revenue is generated from the sale of platform products. Platform products incorporate various components and technologies, including a microprocessor and chipset, a stand-alone SoC, or a multi-chip package based on Intel® architecture. Our remaining primary product lines are incorporated in "adjacency."


Intel/Page 10

INTEL CORPORATION
SUPPLEMENTAL PLATFORM REVENUE INFORMATION
 
 
Q1 2019
 
Q1 2019
 
 
compared to Q4 2018
 
compared to Q1 2018
Client Computing Group Platform
 
 
 
 
Notebook platform volumes
 
(16)%
 
(7)%
Notebook platform average selling prices
 
9%
 
13%
Desktop platform volumes
 
(13)%
 
(8)%
Desktop platform average selling prices
 
3%
 
7%
 
 
 
 
 
Data Center Group Platform
 
 
 
 
Unit Volumes
 
(17)%
 
(8)%
Average Selling Prices
 
(4)%
 
1%








Intel/Page 11

INTEL CORPORATION
EXPLANATION OF NON-GAAP MEASURES

In addition to disclosing financial results in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release contains references to the non-GAAP financial measures included in the table below. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business and measuring our performance.
Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects. Income tax effects have been calculated using an appropriate tax rate for each adjustment. We also provide a non-GAAP financial measure of free cash flow, as described below. 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 from these results should be carefully evaluated.
Amortization of acquisition-related intangible assets: Amortization of acquisition-related intangible assets consists of amortization of intangible assets such as developed technology, brands, and customer relationships acquired in connection with business combinations. We record charges related to the amortization of these intangibles within both cost of sales and operating expenses in our GAAP financial statements. Amortization charges for our acquisition-related intangible assets are inconsistent in size and are significantly impacted by the timing and valuation of our acquisitions. Consequently, our non-GAAP adjustments exclude these charges to facilitate an evaluation of our current operating performance and comparisons to our past operating performance.
Ongoing mark-to-market on marketable equity securities: We exclude gains and losses resulting from ongoing mark-to-market adjustments of our marketable equity securities, after the initial mark-to-market adjustment is recorded upon a security becoming marketable, when calculating certain non-GAAP measures, as we do not believe this volatility correlates to our core operational performance. Consequently, our non-GAAP earnings per share figures exclude these impacts to facilitate an evaluation of our current performance and comparisons to our past operating performance.
Gains or losses from divestiture: We recognized a tax provision adjustment in Q1 2018 due to our divestiture of Wind River in Q2 2018. Consequently, our non-GAAP earnings per share figures exclude this impact to facilitate an evaluation of our current performance and comparisons to our past performance.

Free cash flow: We reference a non-GAAP financial measure of free cash flow, which is used by management when assessing our sources of liquidity, capital resources, and quality of earnings. We believe this non-GAAP financial measure is helpful to investors in understanding our capital requirements and provides an additional means to reflect the cash flow trends of our business.



Intel/Page 12

INTEL CORPORATION
SUPPLEMENTAL RECONCILIATIONS OF GAAP OUTLOOK TO NON-GAAP OUTLOOK
Set forth below are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measures disclosed by the company have limitations and should not be considered a substitute for, or superior to, the financial measures prepared in accordance with GAAP, and the financial outlook prepared in accordance with GAAP and the reconciliations from this Business Outlook should be carefully evaluated. Please refer to "Explanation of Non-GAAP Measures" in this document for a detailed explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.
 
 
Q2 2019 Outlook
 
Full-Year 2019
 
 
 
 
 
 
 
Approximately
 
Approximately
GAAP OPERATING MARGIN
 
27
%
 
30
%
Amortization of acquisition-related intangible assets
 
2
%
 
2
%
NON-GAAP OPERATING MARGIN
 
29
%
 
32
%
 
 
 
 
 
GAAP DILUTED EARNINGS PER COMMON SHARE
 
$
0.83

 
$
4.14

Amortization of acquisition-related intangible assets
 
0.07

 
0.29

Ongoing mark-to-market on marketable equity securities
 
—

 
(0.06
)
Income tax effect
 
(0.01
)
 
(0.02
)
NON-GAAP DILUTED EARNINGS PER COMMON SHARE
 
$
0.89

 
$
4.35

(In Billions)
 
Full-Year 2019
 
 
 
GAAP CASH FROM OPERATIONS
 
$
30.5

Additions to property, plant and equipment
 
(15.5
)
FREE CASH FLOW
 
$
15.0



Intel/Page 13

INTEL CORPORATION
SUPPLEMENTAL RECONCILIATIONS OF GAAP ACTUALS TO NON-GAAP ACTUALS
Set forth below are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the reconciliations from GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to "Explanation of Non-GAAP Measures" in this document for a detailed explanation of the adjustment made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.
 
Three Months Ended
(In Millions, Except Per Share Amounts)
Mar 30,
2019
 
Mar 31,
2018
GAAP GROSS MARGIN
$
9,089

 
$
9,731

Amortization of acquisition-related intangible assets
281

 
275

NON-GAAP GROSS MARGIN
$
9,370

 
$
10,006

 
 
 
 
GAAP GROSS MARGIN PERCENTAGE
56.6
 %
 
60.6
%
Amortization of acquisition-related intangible assets
1.7
 %
 
1.7
%
NON-GAAP GROSS MARGIN PERCENTAGE
58.3
 %
 
62.3
%
 
 
 
 
GAAP OPERATING INCOME
$
4,174

 
$
4,470

Amortization of acquisition-related intangible assets
331

 
325

NON-GAAP OPERATING INCOME
$
4,505

 
$
4,795

 
 
 
 
GAAP TAX RATE
12.6
 %
 
11.1
%
Other
(0.1
)%
 
0.6
%
NON-GAAP TAX RATE
12.5
 %
 
11.7
%
 
 
 
 
GAAP NET INCOME
$
3,974

 
$
4,454

Amortization of acquisition-related intangible assets
331

 
325

Ongoing mark-to-market on marketable equity securities
(253
)
 
(606
)
Income tax effect
(4
)
 
2

NON-GAAP NET INCOME
$
4,048

 
$
4,175

 
 
 
 
GAAP DILUTED EARNINGS PER COMMON SHARE
$
0.87

 
$
0.93

Amortization of acquisition-related intangible assets
0.07

 
0.07

Ongoing mark-to-market on marketable equity securities
(0.05
)
 
(0.13
)
Income tax effect
—

 
—

NON-GAAP DILUTED EARNINGS PER COMMON SHARE
$
0.89

 
$
0.87





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